Answer:
The customer could buy call options and sell put options.
Explanation:
A call option gives you the right to buy a stock at a certain price. If the price of a stock rises (as the investor believes), the call option can be exercised and a profit will be made.
A put option gives you gives you the right to sell at a certain price. If the price of a stock rises (as the investor believes), the put option will not be exercised since the sales price will be lower than the market price.
Answer:
France having a comparative advantage over Germany in ships.
Explanation:
Comparative advantage is defined as the ability of a country to produce goods and services at a lower opportunity cost compared to other countries that produce a particular good. For example of country A produces cars at $300 cost, whole country B produces the Se car at cost of $1000 the country A has comparative advantage and should focus on producing cars.
In the scenario given Germany enjoys a comparative advantage over France in autos relative to ships.
This implies that France has a greater comparative advantage in ship production than Germany.
Answer:
$2,375,000
Explanation:
Retained Earning is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Balance of Retained Earning = $500,000
Dividend Payment = 25% x $500,000 = $125,000
Additions to Retained Earning = $500,000 - $125,000 = $375,000
New balance of Retained Earning = $2,000,000 + $375,000 = $2,375,000
Answer:
False, its score should be 155.
Explanation:
RFM analysis scores customers on a ranking that goes from 1 - 5, with 5 being the best parameter (555 is the ideal customer). The factors used in a RFM analysis are recency, frequency, and monetary value.
Companies perform RFM analysis based on the idea that 80% of the company's total business comes from only 20% of its customers.
In this case, Ajax would get:
- 1 for recency since it hasn't purchased anything in a long time,
- 5 for frequency because when it used to purchase goods, they did it quite frequently
- 5 for monetary value because they were the largest sales
Answer:
Price elasticity of supply = 2.25
Explanation:
Price elasticity of supply is defined as the degree to which quantity of a product supplied is sensitive to changes in price.
In a competitive market when the price of a good increases its supply also increases. This is because suppliers want to make more profit from the higher product price.
Price elasticity of supply = %∆ Quantity ÷ %∆ price
Price elasticity of supply = {(600 - 1000) ÷ (1000 + 600)/2}/ {(8 - 10) ÷ (10+8)/2}
Price elasticity of supply = -0.5 ÷ -0.2222
Price elasticity of supply = 2.25
