Answer: Derivative security
Explanation:
Derivative security is referred to as the security that provides a payoff which depends on the values of other assets.
A derivative security is referred to as the financial instrument whereby the value depends on the value of another asset. There are different types of derivatives such as options, swaps, futures, and forwards. Example of derivative security is convertible bond.
Answer:
D)the second-period demand curve will shift substantially to the right.
Explanation:
If monopolist succeeds in selling a sufficiently high quantity in the first period, then in the second period it will further increase and will shift the demand curve to right hand.
Answer:
Classification of Projects
The projects are classified as shown below:
Strategy Project:
Strategy projects supports organizations long term mission. it helps in increasing market share and revenue. Among the given projects, the strategy projects are:
b. build a 4 mile nature hiking trail.
d. Launch a new promotional campaign with Hawaii Airlines.
e. Convert 12 adjacent acres into wildlife preserve.
g. Change hotel brochures to reflect Eco-tourism image.
i. Introduce wireless internet service in cafe and lounge areas.
Operational Projects:
These projects support current business operations. Among the given projects, the operational projects are:
c. Renovate horse bran.
Compliance Projects:
These are those must do projects to function under a particular category. Among the given projects, the compliance projects are:
a. Convert the pool heating system from electrical to solar power.
f. Update all bathrooms in condos that are 10 years old or older.
h. Test and revise disaster response plan.
Not all projects are easy to classify. There are always some things falling under more than one category. Categorizing projects will help us to prioritize the implementation of the same. Compliance projects should be done at any cost. The organization's view will be reflected in the strategy projects. Operational projects can be postponed if financial budget constraint exists but compliance cannot be postponed.
Answer:
Check the following calculations
Explanation:
1. Received an order for 1,000 units
Cost per unit = $46
now
Incremental revenue per widget = $43
Incremental cost per widget: =( Direct material + Direct Labor + Vairable manufacturing overhead) =
$7 + ($15 × 2) + $4 = 41
Incremental profit per unit = 43 - 41 = $2
Total incremental profit = $2 × 1,000 = $2,000
Kasten can make an extra $2,000
2. Cost to buy per widget = $39
Cost to make per widget: = ( Direct material + Direct Labor + Vairable manufacturing overhead) =
$7 + ($15 × 2) + $4 = 41
Incremental savings per widget if purchased =41 - 39 = $2
Total incremental savings if purchased = $2 × 10,000 = $20,000
Thus we can say Kasten will save $20,000 if it buys instead of makes
