Answer:
The seller sets such high prices to increase his revenue. If he sets lower price, the revenue will also be less whereas high pricing will result in more revenue. Sellers sometimes set price as high as 800% above the cost. Though it discourages low type consumer but ensure high return by exploiting high paying capacity consumers. e.g. Apple (iPhone). Next it protects the seller from floating prices. Also by setting high price, sellers target high paying capacity consumers and increase their revenue manifold.
Answer:
$10,400
Explanation:
he cost of the cost sold is the total cost sold in a particular year. the cost of goods sold COGS is calculated using the formula
COGS = opening stock + purchases(total manufacturing costs) - closing stock.
In the case, the opening stock is 0
closing stock 11,00 units
cost of good sold = $3800
average cost per unit = $6
Cost = $3800
cost of closing stock = 1,100 x $6 = $6,600
Therefore: $3,800= 0 +TMC - $6600
Total manufacturing cost = $3800 + $6600
=$10,400
Answer:
6.75%
Explanation:
Data provided in the question:
Beta of the stock = 1.12
Expected return = 10.8% = 0.108
Return of risk free asset = 2.7% = 0.027
Now,
Since it is equally invested in two assets
Therefore,
both will have equal weight = = 0.5
Thus,
Expected return on a portfolio = ∑(Weight × Return)
= [ 0.5 × 10.8% ] + [ 0.5 × 2.7% ]
= 5.4% + 1.35%
= 6.75%
OPM stands for c. Other's people's money in the context of leveraging of OPM.
Explanation:
Leveraging OPM is a real estate term used by the moguls of the real estate business as the mantra for success and smart investment.
It rather ludicrously means other people's money and is used in terms of financing and investing in real estate.
Use of OPM means greater financial assets and growth opportunity because of the freer cash flow it arguably achieves for the investor.
But it also comes at a risk, which is just the risk of putting 'Other People's money' in danger in your own practices.