Answer:
INCREASE the consumption of Pepsi and REDUCE the consumption of Hamburger
Explanation:
Based on the information given we were told that Bill uses his whole budget to purchase the following :
5 cans of Pepsi
3 Hamburgers per week
And the following were the price:
Pepsi costs $1 per can
Hamburger cost $2
Bill marginal utility:
Pepsi 4
Hamburgers 6
Based on the above details this means that Bill could increase his utility by INCREASING Pepsi consumption and REDUCING hamburger consumption reason been that 5 cans of Pepsi costs $1 per can which will gives us income of $5 ($5×1) while 3 Hamburgers per week cost $2 which will give us income of $6 ($3×2) which typically means that the Hamburgers has more income that Pepsi.
Secondly since the marginal utility for Pepsi is 4 while that of Hamburgers is 6 which means that Hamburgers has higher MARGINAL UTILITY than that of Pepsi because the consumption of Hamburgers is higher than the consumption of Pepsi.
Therefore the best thing that Bill could do in order to increase his Pepsi utility is for Bill to increase Pepsi consumption and reduce hamburger consumption.
Answer:
The answer is: The expected rate of return from this investment is 26.68%
Explanation:
We are given the following cash flows for this operation:
- Initial investment = -$24.50
- Cash flow 1 = $1.25 (dividend year 1)
- Cash flow 2 = $1.35 (dividend year 2)
- Cash flow 3 = $1.45 (dividend year 3)
- Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)
Using an excel spreadsheet and the IRR function:
=IRR(value 1: value 5) =26.68%
where
- value 1 = -24.50
- value 2 = 1.25
- value 3 = 1.35
- value 4 = 1.45
- value 5 = 56.55
Answer:
A two-column schedule listing names and balances of all ledger accounts.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
A trial balance consists of a two-column schedule listing names and balances of all ledger accounts.
Answer:
c. outsourcing
Explanation:
Outsourcing -
It refers to the process of hiring another company , which is responsible for some external project or task , is referred to as outsourcing .
It can be a short term process of hiring , it may also require transferring the employees to another firm internally .
Hence , from the given scenario of the question ,
Hiring the packaging firm by another company , showcases the method of outsourcing .
Answer:
Reward to volatility ratio = 0.71
Explanation:
Given the expected risk premium = 10%
Standard deviation = 14%
The rate on treasury bills = 6%
The investment amount that the client chooses to invest = $60000
Expected return of equity = the expected risk premium + The rate on treasury bills
Expected return of equity = 10% + 6% = 16%
Standard deviatin = 14%
Reward to volatility ratio = (expected return - risk free rate) /standard deviation
Reward to voltality ratio = (16% -6%)/14%
Reward to voltality ratio = 0.71
