Answer:
The correct answer is option 1 and 4.
Explanation:
Discounted Cash Flow Methodology attempts to assign present values to an investment's expected future cash flows. It is an effective way to evaluate and compare various investment options to one another. As fixed-income securities have fixed interest payments, DCF is an effective way to compare fixed-income securities. It is also used to calculate the current market values of these securities.
The project with positive NPV is accepted or higher NPV means the project is more lucrative.
Answer: “over-applied by $30,000”
<span>We know that
the Manufacturing Overhead is applied using direct labor cost as the driver. The predetermined application rate using the direct labor
cost is calculated:</span>
Rate = Estimated Overhead/Estimated Driver
Rate = $600,000/($6.00 x 50,000)
Rate = $600,000/$300,000
Rate = $2 of overhead is applied for every $1 of direct labor cost
Since the actual direct labor cost is $325,000, therefore:
Manufacturing Overhead = $325,000 x $2
Manufacturing Overhead = $650,000
Since actual Manufacturing Overhead is only equal to $620,000, this means that
it is “over-applied by $30,000”
Answer:
Expected Return on Portfolio = 8.78%
Explanation:
The investment in stock A $2200 while investment in Stock B $3200 by adding both total investment of stock becomes $5400. Dividing Stock A and stock investment by total investment of portfolio gives the weight individual stocks in portfolio as Stock A has 40.7% while stock B has 59.3%. The expected return of Stock A is 7% while expected Return Stock B is 10% Multiplying the individual expected return of stock with weight of stock gives weighted return of individual stock and through adding weighted return of individual stock we get weighted average return of stocks at 8.78%.
a) Internal consistency
Explanation:
The consistency of different items meant to measure the same thing within the test. An internal consistency contains a special case of reliability to split half, the scores of two halves of a single test are compared. This comparison of two tests tends to index reliability.
Answer:
to increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand.
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
Requirements to practice successful price discrimination
1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers
2. The firm must have different elasticities of demand for their product in different markets. the firm should charge the higher price in the market with the less elastic demand.
3. The firm must be able to segment the market for their products
4. the firm's product should have a lot of close substitutes.
