Answer:
d. Selling Price
Explanation:
Break even point is calculated as 
Thus, break even point in units only in two cases,
- Fixed cost is reduced that is decreased,
- Contribution per unit is increased.
Now, here the options are
a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.
b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.
c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.
d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.
Correct option is
d. Selling Price
Answer:
facing the speaker and maintaining eye contact
Answer:
Current share price is $59.88
Explanation:
First calculate present value of all four years dividend
Year Calculations PV
1. 14 x (1.10)^-1 $12.73
2. 10 x (1.10)^-2 $8.26
3. 9 x (1.10)^-3 $6.76
4. 4.5 x (1.10)^-4 $3.07
As the Dividend in fifth year will grow for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
Dividend in the fifth year = $4.5 x ( 1 + 4% ) = $4.68
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Dividend / Required Rate of return
Value of Stock = Dividend / Required Rate of return
Value of Stock = $4.68 / 10%
Value of Stock = $46.8
This the value in fifth year calculate it present value
Today's value = $46.8 x ( 1 + 10% )^-5 = $29.06
Now add the all present values
Total Present value = $12.73 + $8.26 + $6.76 + $3.07 + $29.06 = $59.88
A retrenchment strategy <span>is another term for a defensive strategy.
</span>Companies use the retrenchment strategy with the goal to reduce the diversity or the overall size of the operations of the company and by doing so to cut expenses and reach to a more stable financial position.
<span>This strategy will revitalize the organizational resources.</span>
Answer: will increase but this will not affect living standards
Explanation:
GDP is sometimes called an incomplete measure because there are certain measures that it does not include such as the black market.
If firms in the black market shift to the formal sector, they will now be included in GDP which means that GDP will increase.
The living standards of people in the country will probably not change however because the firms involved were simply shifting sectors and are not said to be more or less prosperous as a result. Assuming they remained the same, nothing changes for living standards.
