Assuming the firm's expected sales are $264,000 in which the firm break-even sales are $197,000, the margin of safety in dollars is:$67,000.
<h3>Margin of safety in dollars</h3>
Using this formula
Margin of safety in dollars=Expected sales-Break-even sales
Where:
Expected sales=$264,000
Break-even sales=$197,000
Let plug in the formula
Margin of safety in dollars=$264,000-$197,000
Margin of safety in dollars=$67,000
Inconclusion the margin of safety in dollars is: $67,000.
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As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.
Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.
If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.
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Answer: $8
Explanation:
Given that,
Book value of a bond = $100
Market value of the bond (principal + interest payable) = $120
Discount rate when bond was issued = 10%
Discount rate prevailing at the beginning of the year = 8%
Therefore, Discount amount = 0.08 × $120
= $9.6
Payments to bondholders = $7
The bond was bought back(Repurchase price) for $95 at the end of the year
Net worth at the end of 1 year = Market value - Discount amount - Payments to bondholders
= $ 120 - 9.6 - 7
= $103.4
Net gain / loss = Net worth at the end of 1 year - Repurchase price
= $103.4 - $95
= $8.4
= $8 (approx)
Answer:
$897
Explanation:
Calculation to determine the value today
Using Financial calculator to determine the Present value (PV)
N = (12- 2) = 10 years
I = 14%
PMT =12%*1,000=120
FV = $1000
PV=?
Hence;
PV = $896.68
PV=$897 (Approximately)
Therefore the value today is $897
Answer:
Bring together complimentary skills
Explanation:
Forming strategic alliances is an act of bring together resources in order to gain economies of scale and complimentary skills as well.
This may be particularly necessary when an organization wants to go into a new project but some required resources are in deficient.
It is all about identifying a potential partner that will be able to fill in the void , making proper research to confirm assumptions and observations and subsequently meetings and discussions.