Answer:
The correct option is :
This stock is overvalued; you shouldn't consider adding it to your portfolio.
Explanation:
The stocks that are in cedar valley corporation has a price that exceedes its present value from this statement the first given option doesn't justify as the stocks rates are not undervalued.
Now, in the second option its again given that the stock will be overvalued which is true but it should be added to the portfolio is not correct. so, this option is not considered.
In the third option it mentions that stock is overvalued which is the correct option and also that it shouldn't be added in portfolio.
And the last one states that its undervalued which restricts the option at this point only.
So, third option is correct.
That's not a question, but the proper answer should be a loan.
Answer:
C. Spreading risk by investing your money in a variety of funds and investment options.
Explanation:
To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.
Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.
Answer:
Contribution margin per units= $169
Explanation:
Giving the following information:
Selling price $ 220
Direct materials $38
Direct labor $ 1
Variable manufacturing overhead $8
Variable selling expense $ 4
<u>The contribution margin per unit is calculated deducting from the selling price all the variable components:</u>
Total unitary variable cost= $51
Contribution margin per units= 220 - 51
Contribution margin per units= $169
Answer:
The best way for Professor Fader to pick the Salesperson of the Month is to measure the change in <u>total customer lifetime value</u> for that month delivered and give the award to the salesperson with the highest points.
Explanation:
Total Customer Lifetime Value (CLV) refers to the total value delivered by a customer over a particular period not just in the number of purchases they have made. A customer's value also includes, but is not limited to:
The formula for calculating CLV is by:
(Annual Customer Revenue X Lenth of Relationship in Years) - (Total costs of acquiring plus Total Cost of Serving the customer)
or
(ACR x LR)-(TCA+TCS) = CLV
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