The correct answer to this open question is the following.
Although there are no options attached, neither a case nor example for reference, we can comment on the following.
If management decides to buy the cupholders from outside suppliers rather than to continue making the part, the annual financial advantage would be that the company will save on fixed costs, the ones implied on hiring and paying people their salaries to produce the cupholders on a monthly basis. Also, the costs of machines to fabricate them.
That is why companies have to smartly decide about the so-called "make-or-buy decision." The best recommendation to make the correct decision is to apply a quantitative analysis.
Answer: The answer has been attached below
Explanation:
Financial statements are the formal records of financial activities and position of an individual, a business, or other entity. The relevant financial information is typically presented in a structured manner and in an understandable form.
Financial statements can include balance sheet, income statement, statement of cash flows, the notes to accounts and statement of changes in equity.
The solution to the question is attached.
Answer:
B) False
Explanation:
CAPM formula for a stock's expected rate of return is as follows;
CAPM r = risk free rate + beta (rM - risk free rate)
r = expected return
rM = market return
As is seen in the above formula, the return is determined by the beta of the stock, risk free rate and the market return. If the beta of the stock increases assuming the market return and the risk-free rate remain constant, the stock's return will also increase and vice versa.
Answer:
a. sellers are to a change in price
Explanation:
The price elasticity of supply measures the percentage change in quantity supplied with the percentage change in price
In mathematically,
Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)
It shows a direct relationship between the quantity supplied and the price.
