Answer:
Explanation:
a.)
Given the different probabilities with their respective returns, you will find the firm's expected return using the following formula;
return; r = SUM (probability *expected return)
The formula above means that you multiply each probability by return , then sum the results.
r = (0.25*0.10) +(0.50*0.15) + (0.25*-0.02)
r = 0.025 +0.075 -0.005
r = 0.095 or 9.5%
Therefore, the correct answer is 9.5%. The choices given do not apply.
b.)
Use the Capital Asset Pricing Model(CAPM) formula to calculate the required return. Additionally, since we have inflation rate, adjust the formula to that inflation rate since investors would require a high rate to compensate for it.
Inflation adjusted CAPM required return; r = risk free + inflation + beta(Market return - risk free)
r = 0.045 + 0.03 + 1.50(0.11 - 0.045)
r = 0.075 + 0.0975
r = 0.1725 or 17.25%
Therefore, the required rate is 17.25%
Answer:
$84
Explanation:
The computation of each unit of the company's inventory under absorption costing is shown below:
= Direct material used + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $12 + $18 + $25 + $29
= $84
We simply added the first four-unit cost through which total unit cost would come
All other information which is given is not relevant. Hence, ignored it
Answer:
Idea generation
Explanation:
Idea generation -
It is the method for searching new methodology or technique to the solution to any previous idea .
It is the main and the most primary focus during the phase of the creative process .
Analyzing the market , interpreting the competitions and asking the customers , all falls in this stage .
Hence , the stage which is asked by the question data is the stage of Idea generation .
Answer:
Consumers are always willing to pay more for brand name
Explanation:
This is absolutely incorrect as there is no connection between how people pay for product and the brand. It is called a blind critics.
The preference of customer will always differ everytime and the good brands are likely to get more customers because their quality and satisfactory rate are always at Top level.
The competitors can only get into the market and get its shares if their quality and satisfactory rate of their product is also good as their rivals product.
