Equity financing is a popular choice to provide long-term financing for a corporation because it does not have to be repaid. Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions here.
Answer:
a. $39,790.
Explanation:
The computation of the incremental income of processing further is shown below:
Sales - Deluxe - 11,900 Units × $31.10 $370,090
Sales - Super - 5,900 Units × $19.90 $117,410
Total Sales $487,500 (a)
Further Processing Costs $11,900
Sale Price of speciality Food $435,810
19,900 Units × $21.90
Total $447,710 (b)
Net Incremental Income $39,790 (a - b)
Hence, the correct option is a.
Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
Here are the 5 ways:
- Receive information about customers' preference that we could use to improve our products
- Predict what future products that might be needed in the market
- Create a better and stronger relationship with your customer
- Minimize customer's effort to contact you
- Make the company able to make faster decisions
Answer:
False
Explanation:
A put option buyer purchases a right to sell a currency on expiry date at a pre determined exercise price or strike price. Put buyer is not under any obligation to sell the option. He will only exercise the right when it is beneficial for him.
3 terms are relevant here,
OP= Option premium paid
CMP= Current Market Price
EP= Exercise or strike price
A put buyer gains when his exercise price is more than the CMP on the expiry date.
His gain is = EP - CMP - OP
So, when exercise price as reduced by option premium paid is equal to current market price, break even point for a put buyer is reached.
Hence the given statement is false.
