Answer:
False
Explanation:
International Product Cycle is a model that patterns international manufacturing & trade of product . It has 4 stages :
- Introduction - Innovated Invention in a developed country. Limited production & consumption, no competition
- Growth - Spread to other developed countries, foreign production & competition starts, consumption & coverage rise.
- Maturity - Spread to developing countries, stagnant growth in developed countries & fast growth in less developed countries
- Decline - Spread to less developed countries, technology outdated, various substitutes emerge & no. of sellers decline, demand still exist in less developed countries.
So: the next stage after 'Innovated Invention' in a developed country X is - its growth in other developed countries, not 'manfacturing in developing countries' (reflected in 3rd maturity stage).
Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
Answer:
Purchase Price Variance (PPV)
Explanation:
Answer:
The company's price–earnings ratio is 36.
Explanation:
Price earning ratio is the ratio of market value of share to earning per share. It shows that how much investors are willing to pay for each dollar of earning of the company.
Profit margin = Net income / sales
0.04 = Net Income / $7800
Net Income = $7800 x 0.04 = $312
Earning Per share = Net Income / number of outstanding shares
Earning Per share = $312 / 6,100 = $0.05
Price earning ratio = Market price of share / Earning per share
Price earning ratio = $1.8 / $0.05 = 36
Answer:
The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it. The more people that pay premiums, the less likely each insured client will experience an emergency.
