Answer:
b) False
Explanation:
The price reduction will stimulate demand for Rajiv's Fire Engines, in the short run, before competitors catch up or even overtake the firm with price reduction strategies of their own. This will in turn drive sales and the production quantity to increase marginally in the short-run. However, in the long-run, because the market is competitive, Rajiv Company will not totally benefit from the price reduction as the price war intensifies among the competitors.
Answer:
D. $285,000
Explanation:
When a company is acquired by another company, the parent company (the new owner) must report the assets at fair market value - amortization.
FV = $300,000
amortizable value = $100,000
depreciation for 3 years (2017, 2018 and 2019) = ($100,000 / 20) x 3 = 415,000
reported value = $300,000 - $15,000 = $285,000
Answer: C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future.
Explanation:
The beta coefficient is used by an economic entity to measure how volatile an individual stock is when such stock is being compared to the market's systematic risk.
Of the options given in the question, the correct answer is option C which states that "C. The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta. However, this historical beta may differ from the beta that exists in the future"
Electronic Profiling is your answer. I hope I helped:)
Answer:
Neither project should be chosen
Explanation:
Given that
Each project cost of capital is 12%
The IRR of project A is 11.4%
And, the IRR of project B is 11.1%
As we can see that the cost of capital of each project with their internal rate of return so no project should be selected
Therefore the above statement represent an answer
The same should be relevant
