Answer:
The correct answer is A) tend to buy high and sell low.
Explanation:
The theory of odd lots is a theory of technical analysis based on the assumption that the small individual investor who trades foreign lots is often wrong. Therefore, if sales of odd lots increase and small investors are selling a share, it is probably a good time to buy. Vice versa, when purchases of odd lots increase, the theory of odd lots would indicate a good time to sell.
Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
Answer:
True
Explanation:
The term business operating system (BOS) refers the to standard, enterprise-wide collection of business processes that are used in many diversified industrial companies.
It refers to a collection of the business processes that can be used to boost the efficiency of each function of the business. It includes the fundamental framework, policies and routines which are needed to operate and grow a business.
It has been adopted by companies like; The Lego Group, Toyota Motor Corporation and The Boeing Company.
Answer:
Line extension
Explanation:
Line extension is the term which occurred when the company or business introduce the extra or the additional items in the category of the same product under the same brand name.
Therefore, it is (line extension) the strategy used by business for developing the individual offerings for appealing to the different segments of the market while the remaining closely related to the product line which is existing.
Answer:
The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.
Explanation:
<u>Option A purchase</u>
F0 -160,000
operating cost 5000 per year we solve for the present value of an annuity
C 5,000.00
time 10
rate 0.12
PV -$28,251.1151
PV of the salvage value
Maturity $10,000.0000
time 10.00
rate 0.12000
PV 3,219.7324
<u><em>present worth</em></u>
-160,000 - 28,251.11 + 3,219.73 = -185.031,38
<u>Option B Lease</u>
10 payment beginning immediatly of $25,000
Therefore, it is an annuity-due
C 25,000.00
time 10
rate 0.12
PV -$158,206.2448