Answer with Explanation:
The decision making under the conditions of uncertainty:
Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.
The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.
Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.
Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.
The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.
The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.
Answer:
13.82%
Explanation:
Data provided in the question:
Sales = $325,000
Net income = $19,000
Assets = $250,000
Total-debt-to-total-assets ratio = 45.0% = 0.45
Now,
Total asset turnover = Sales ÷ Total assets
= $325,000 ÷ $250,000
= 1.3
Profit margin = Net income ÷ Sales
= $19,000 ÷ $325,000
= 0.05846
Equity multiplier = 1 ÷ [ 1 - Debt to asset ratio]
= 1 ÷ [ 1 - 0.45 ]
= 1.818
thus,
ROE = Profit margin × Total asset turnover × Equity multiplier
= 0.05846 × 1.3 × 1.818
= 0.1382
or
= 0.1382 × 100%
= 13.82%
Sbs could do it by starting to find out each functions of the spare parts.
If the spare parts is resided to be a part of the product, it should be classified as inventory.
IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.
If the spare parts is part of research and development it should be classified as other assets.
Answer:
This type of trade is called Arbitrage trading.
Explanation:
Arbitrage trading a simultaneously selling and buying of financial instruments or entering into various transactions at the same time in at least two different market to make money through the exploitation of price differences.
In this case, because there is price differences between the borrowing market in Japan and deposit market in Australia, the trader can earn profit by borrowing in Japan in yen, converting the amount into AUD and deposit it in Australia to earn 4% per annum profit.
Such scenario exists as a result of market inefficiency. As more and more trader does the same trading, borrowing cost in Japan will be higher ( due to higher demand) and deposit cost in Australia will be lower ( due to higher supply). In the end, market will be efficient and such trading will not lead to any profit gained from price differences.
The correct answer should be B) Small franchise owners enjoy a degree of control and can benefit from their support of the parent company
In a franchise, you're the owner of the shop, it's just that you work under licenses set by the parent company. Therefore, you're allowed to have some control such as employment or similar.
