Kayla behaves as if movie tickets are <u>normal </u>goods and Jada's income elasticity of demand for movie tickets is <u>negative</u>.
Answer:
E. If the interest rate the companies pay on their debt is more than their basic earning power (BEP), then Company Heidee will have the higher ROE.
Explanation:
Base on the scenario been described in the question, we saw that between the two companies, Heidee and Leaudy, they both have the same total assets, sales, operating costs, and tax rates, and they pay the same interest rate on their debt but company Heidee has a higher debt ratio, this will make company Heidee has a higher ROE because of its higher ratio of debt
Answer:
Buy the stock because it is underpriced and investor will make money in the near future.
Explanation:
Required rate of return is defined as the estimated return am investor wants to gain for taking on a certain amount of risk when investing in securities.
The higher the risk the higher the required rate of return.
If the expected rate of return exceeds the required rate of return then the investor will consider the share underpriced and experiencing supernormal growth.
For example if a stock has required rate of return as 10% and expected rate of return as 15%, it means that the stock will perform above its peer stock in the market and the price will rise in the future.
Answer:
Option A is the correct one
Explanation:
Among the various options given in question statement, option A is correct
Cost behavior analysis is done make management comprehend the impact of various costs change versus changes in activities in various levels of the company. This may involve direct materials, direct labor, and overhead costs. Hence if there is no correlation between changes in the level of activity and changes in costs, then such analysis wont be an effective cost behavioral analysis
It is the goverment agencies