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3 years ago

Under which one of the following circumstances can an MRP system be used to its best advantage?

Business

1 answer:

Drupady [299]3 years ago

5 0

Answer:C. When the item demand is constant

Explanation:

MRP means material requirement planning it shows when materials needs to be replenish for inventory production, so that inventory is only produced as at when needed.

A constant demand will help to determine perfectly when material is needed.

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The risk-free rate is 5%; Stock A has a beta of 2.0; Stock B has a beta of 1.0; and the market risk premiumis positive. Which of

butalik [34]

Answer:

C) If Stock B's required return is 11%, then the market risk premium is 6%.

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return) is also known as the market risk premium

If we take the required return is 11%, so the market risk premium would be for stock B

11% = 5% + 1 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 6%

If we take the required return is 11%, so the market risk premium would be for stock A

11% = 5% + 2 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 3%

Hence, the correct option is C

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3 years ago

The natural rate of unemployment will help determine

kotykmax [81]

<span>The point of the long-run aggregate supply curve.

I hope this helps!
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4 0

3 years ago

Read 2 more answers

As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negat

Juliette [100K]

Answer:

ROI = net profit / total investment

1. What is the current return on investment (ROI) being realized by your division

ROI = $625,000 / $4,150,000 = 15.06%

2. What would happen to the near-term ROI of your division after adding the effect of the new investment?

ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) = 14.36%

If you carry out the new project the ROI of your division will decrease.

3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?

Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.

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3 years ago

Your rich aunt has promised to give you $ 2 comma 000 per year at the end of each of the next four years to help you pay for col

Mekhanik [1.2K]

Answer:

The answer is D

Explanation:

6 0

3 years ago

An example of a tying arrangement is______ a. a restaurant offering both Pepsi and Coca-Cola products. b. a car manufacturer ins

ikadub [295]

Answer:

The correct answer is letter "B": A car manufacturer installing expensive onboard GPS/navigation systems in all the cars it sells.

Explanation:

A tying agreement is the type of contractual arrangement where a seller offers other(s) product for the purchase of one good as a part of only one bundle. The secondary product might not be necessary but the seller offers it mainly to generate more profit. Tying arrangements are considered anti-competitive practices.

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3 years ago