Answer:
a. Risk-free rate of return:
= Real rate of return + Inflation premium
= 3.2% + 5.1%
= 8.3%
b. Required return for investment A:
= Risk free rate of return + Risk premium
= 8.3% + 7.4%
= 15.7%
Required return for investment B
= 8.3% + 8.9%
= 17.2%
Answer: $10,869.57
Explanation:
The Nominal GDP is the total amount of final goods and services produced in a country within a period, usually a year. It is calculated using the current year's prices.
Real GDP adjusts the Nominal GDP for price changes by using the price level of a certain base year.
The GDP Deflator is the price level of the current year and can be useful in calculating how much the prices have risen or fallen from the prices of the base year.
The formula is;
(Nominal GDP/Real GDP)*100 = GDP Deflator
Making Real GDP the subject;
Real GDP = (Nominal GDP/GDP Deflator)*100
= (10,000/ 92) * 100
= $10,869.57
A. Fit
B. Unique Activities
C. Positioning
D. Trade-off
E. Operational effectiveness
It was an example of Positioning.
Answer: Option C.
<u>Explanation:</u>
A positioning strategy is the point at which an organization picks a couple of significant key territories to focus on and exceeds expectations in those regions.
A compelling positioning procedure thinks about the qualities and shortcomings of the association, the requirements of the clients and showcase and the situation of contenders. This helps to increase the effectiveness of the company.
<span>Average number of common shares outstanding: (13,000 + 24,000 ) / 2 = 18,500
Earnings Per Share = (Net income - Preferred dividends) / Average number of common shares outstanding
Earnings Per Share = ($80,000 - $21,000 ) / 18,500
Earnings Per Share = $3.19</span>
Answer:
70%
Explanation:
Margin of safety is the amount of sales a company makes in excess of the breakeven point
Margin of safety = (actual sales - break-even sales) / actual sales
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit /
$42000 / (42 -14) = 1500
(5000 - 1500) / 5000 = 70%
