Answer:
They reveal how the author(s) interpreted the findings of their research and presented recommendations or courses of action based on those findings.
Explanation:
Answer: <em><u>16.5% is the average tax rate that will result in a 10 percent increase in tax revenues.</u></em>
Explanation:
This is an example of static forecasting since no time parameter is involved.
Now,
Let initial revenue be "R" ,
"n" be no. of taxpayer
∴ R= 65000×0.15×n
R +0.1R= 65000×rate×n
Using the above two equation, we'll get ;
<u><em>r = 16.5%</em></u>
Answer: C.$221.86
Explanation:
Contribution Margin is the difference between the sales price and the variable costs.
Best case scenario of Sales would mean it is the higher amount.
Best case scenario of costs would mean the lower amount.
Best case Sales
= 349 * ( 1 + 3%)
= $359.47
Best Case Variable Cost
= 139 * ( 1 - 1%)
= $137.61
Best Case Contribution Margin
= Best case Sales - Best Case Variable Cost
= 359.47 - 137.61
= $221.86
Answer: Stock B
Explanation:
Use CAPM to calculate the required returns of both stocks.
Stock A
Required return = Risk free rate + beta * ( Market return - risk free rate)
= 5% + 1.20 * (9% - 5%)
= 9.8%
Stock B
Required return = 5% + 1.8 * (9% - 5%)
= 12.2%
Both of them have Expected returns that are higher than their Required returns so both of them are good buys.
The better buy would be the one that has more expected value excess over required return.
Stock A excess = 10% - 9.8% = 0.2%
Stock B excess = 14% - 12.2% = 1.8%
<em>Stock B offers a higher excess and is the better buy. </em>
