Marginal analysis is to examine the added benefits versus the added cost of an activity. Consumers use marginal analysis unknowingly for their decisions everyday. While producers use marginal analysis as a tool for making a decision that will help them maximize their financial gain.
Answer:
The price earnings ratio is 19:1
Explanation:
The price earnings ratio tells us that how much price the investors are willing to pay for $1 of earnings provided by the company. The price earnings ratio is calculate by dividing the price per share by the earnings per share.
Price earnings ratio = Price per share / Earnings per share
The price per share is the market price of the stock.
The earnings per share is calculated using the following formula:
Earnings per share = Net Income / Weighted average shares outstanding
Earnings per share = 240000 / 60000 = $4 per share
The price earnings ratio = 76 / 4 = 19 / 1 or 19:1
<u>Answer:</u>
<em>C. the price for most products and services is always the same.</em>
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<u>Explanation:</u>
A price is primarily the task of a numeric incentive to an item. Prices help us to settle on ordinary monetary choices about our needs and wants. Prices are a sign of the popularity of a product; in this manner the more well known the product, the higher the value that can be charged. For instance, on the off chance that you see a table of strap tops available to be purchased, you can securely expect that bridle tops are not prevalent.
Answer:
a. the discounted value of all future cash flows associated with the stock.
Explanation:
Stock prices can be seen as an estimated future value of the security. When investors buy shares they look at the performance of the business and buy shares based on this future analysis.
Also the issuer values the shares based on their future forecast of financial performance. For example when a share is issued for $1,000,000 the business would have estimated performance will justify the share price in the future.
Answer:
B. Mutual funds are actively managed while index funds are
passively managed.
Explanation:
Both mutual funds and Index funds are both portfolio investment Instruments. They comprise of a basket of stocks as opposed to single equity.
A professional manager manages a mutual fund. The manager uses different analytical tools to select the stocks to be included in the portfolio carefully. Index funds track the prices of the underlying Index. Index funds can be mutual funds or exchange-traded fund ETF such as the S&P 500. Index funds are passively managed.
Mutual funds will attract a higher commission than index funds to cater for the funds' manager's fee.
