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sattari [20]
3 years ago
6

One of the advantages of target costing is that it specifically considers the probable market price for the product.

Business
1 answer:
dem82 [27]3 years ago
6 0

Answer:

TRUE

Explanation:

This is because the goal of target costs is driven by the market price and customer satisfaction.

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A policy that provides coverage for losses over an extended period of time up to a maximum benefit limit is known as a(an):
Tom [10]

Answer:

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Explanation:

This policy is also know as Lifetime Maximum Benefit or Maximum Lifetime Benefit Policy where an insured individual will get paid the maximum amount of any health plan during his entire lifetime.

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The total quantity of output demanded at alternative price levels in a given time period, ceteris paribus, is the definition of
lora16 [44]
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Read 2 more answers
You know that the assets of a firm BIG are today worth 100mil. You reasonably feel that in a year they will be either worth 110m
Ainat [17]

Answer:

(1) 95.23 (2)5.008% or 5% (3) The value of equity is zero (4)The future value of the firm will be 110 mil. than Firm equity will be 110-100 =10 mil not zero

Explanation:

Solution

Given that:

The worth in good in this example= 110 mil

Worth in bad in this example =90 mil

The future value =( 110+90)/2

=100

Future value = 100

Now

(1) The Present value = F/(1+r)^n

=100/1.05

=95.23

(2) the yield to maturity is given below:

YTM = (FV/PV)^n -1

Here

FV = future value

PV = present value

n=years

Thus

(100/95.23)^1 -1

=5.008% or 5%

Since the bond are zero coupon bond so interest rate is equal to YTM

(3) The total worth =100 mil

Thus

The Debt +equity =100

100+equity =100

Equity =100-100

=0

Hence the value of equity is zero.

The firm BIG is only debt firm. Firm do not have equity.

(4) The future value of the firm will be 110 mil. than Firm equity will be 110-100

=10 mil not zero

8 0
4 years ago
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