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3 years ago

when comparing companies in different industries a higher profit margin always indicates which company has better management

1 answer:

4 0

Answer: B. When comparing companies in different industries, a higher profit margin always indicates which company has better management performance

Explanation:

The profit margin refers to how much profit the company is making given the amount of sales it makes. It is therefore very dependant on the expenses incurred by the company.

This is why comparing management in different industries by using the Profit margin is like comparing apples and oranges. Industries are different and so are their methods of operation. One industry might require more expenses than another and still only make less sales which would impact it's profit margin negatively.

Profit Margin is best used for companies in the same industry.

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After enrolling in the MBA program at Minor State University, Sheri began having second thoughts. Although MSU seemed to be a go

NARA [144]

Answer:

Option D

Explanation:

In simple words, Cognitive dissonance refers to the practical contact of mental stress that arises whenever an individual holds two or more contradictory beliefs, ideas, values or takes part in a behavior contrary to some of these three.

As per this concept, when two acts or thoughts do not coincide mentally with each other, individuals will do everything they can to alter these until they become compatible.

Thus, from the above we can conclude that the correct option is D .

6 0

3 years ago

The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme

Romashka-Z-Leto [24]

The correct option is B

<u>Explanation:</u>

In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.

That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.

Therefore, Option B is correct

8 0

3 years ago

Assume that Juanita is indifferent between investing in a corporate bond that pays 12.00 percent interest and a stock with no gr

Dennis_Churaev [7]

Answer:

Juanita's marginal tax rate is 42.5%

Explanation:

marginal tax rate = MTR

After tax yield of dividend paying stock is 8.1% * (1-0.15) = 0.069 = 6.9%

The after tax yield of the bond will be 6.9%

Therefore,

6.9% = 12.0% * (1 - MTR)

6.9% = 12.0% - 12.0% *MTR

6.9% - 12.0% = -12.0% * MTR

-0.051 = -0.12*MTR

MTR = 0.051/0.12 = 0.425

MTR = 42.5%

3 0

3 years ago

Question 1(Multiple Choice Worth 10 points)

san4es73 [151]

Answer:

Option A, Increased mental stress

Explanation:

Increased mental stress is one of the possible effect of identity theft.

It can cause following negative impacts on the mental and physical health of an individual

a) It causes sleep disturbance

b) Physical symptoms such as aches and pains, heart palpitations, sweating and stomach issues arises

c) Post stress disorder

d) Anxiety

Hence, option A is correct

8 0

3 years ago

Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr

zmey [24]

Answer:

Market price: 28.90

Explanation:

We will calculate the stock price using the gordon dividend grow model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

D1 = 1.25

grow = g = 6% = 6/100 = 0.06

return= for the return, based on the information give, we will calculate it using the CAPM model:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.04

premium market=(market rate - risk free)= 0.055

beta(non diversifiable risk)= 1.15

$Ke= 0.04 + 1.15 (0.055)$

Ke =cost of capital = return in the dividend grow formula = 0.10325

Now, we calculate the stock price:

$\frac{1.25}{0.10325-0.04} = Intrinsic \: Value$

Stock: 28.9017341

Market price: 28.90

8 0

4 years ago