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3 years ago

Jensen Company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales. True False

Business

1 answer:

Sergeeva-Olga [200]3 years ago

5 0

Answer:

Jensen company has a contribution margin ratio of 45%. This means that its variable costs are 55% of sales.

This statement is true

Explanation:

Contribution margin ratio is the ratio of contribution to sales. Since the contribution margin ratio is 45%, it implies that variable costs are 55% of sales.

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If ABC corporation paid a dividend of $6 per share last year. The stock currently sells for $80 per share. You estimate that the

saul85 [17]

The cost of equity is 13.95%.

<h3>What is stock?</h3>

Stock (sometimes known as capital stock) in the financial industry refers to the shares into which ownership of a corporation or company is divided.
A single share of stock represents a fractional ownership interest in the company based on the total number of shares.
The shareholder (stockholder) will then typically be entitled to that portion of the company's earnings, proceeds from the sale of company assets (after paying off all senior claims such as secured and unsecured debt), or voting rights, with these rights frequently being distributed in proportion to the amount of money each stockholder has invested.

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A share is a unit used in mutual funds, limited partnerships, and real estate investment trusts in the financial markets.
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Learn more about Share here:

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10 months ago

Pioneering advertising is heavily used during the _____ of the product life cycle.

mixer [17]

First Stage/ Beginning Stage/ Introduction Stage

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3 years ago

The risk-free rate is 5.4 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM.

Karo-lina-s [1.5K]

Answer:

11.419%

Explanation:

Given that,

Risk-free rate = 5.4

Market risk premium = 5

Portfolio = $1 million = $1,000,000

Amount invested in stock A = $218,000

Beta A = 0.5

Amount invested in stock B = $1,000,000 - $218,000

= $782,000

Remainder invested in stock B that has a beta = 1.4

Portfolio beta:

= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount

= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000

= ($109,000 + $1,094,800) ÷ $1,000,000

= 1.2038

Required return:

= Risk free rate + (Beta × Market risk premium)

= 5.4% + (1.2038 × 5%)

= 5.4% + 6.019%

= 11.419%

Therefore, the required return on this portfolio is 11.419%

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2 years ago

Select the correct answer. Which kind of relativism suggests that the moral truth is subjective with regard to ethical practices

kondor19780726 [428]

<u>Answer:</u> A. Moral relativism

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Moral relativism means the moral judgement made by people based on their differences such as culture or country, it denotes that there is no one method where people can decide what is right and what is wrong.

The four types of moral relativism are naive relativism, cultural relativism, role relativism and social relativism. Naive relativism means individuals can have own moral values. Cultural relativism means people should not judge based on one's culture. Role relativism means a person with job role should not make judgments on others beliefs.

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3 years ago

What are the four requirement of valid contract

timurjin [86]

Four requirements for a valid contract are an offer, acceptance by the other party of the offer, a mutual agreement or meeting of the minds of the contracting parties and a valid consideration.

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