True or false? you have to be careful because other people will try to steal your idea.

In two to three sentences, explain how a tariff on cars can reduce the demand for imported cars.

artcher [175]

A tariff by definition is a tax to be paid on a particular class of imports or exports. so if people had to start paying extra for imported cars the demand for imported cars would be reduced and the demand for more domestic vehicles would rise.

3 0

3 years ago

The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment

slega [8]

Answer:

Recycling Inductries

1. Condensed Divisional Income Statement for the year ended Dec 31 20Y8

Business Division Consumer Division

$ $

sales 42,800,000 56,000,000

Cost of Goods Sold (23,500,000) (30,500,000)

Gross Profit 19,300,000 25,500,000

Operating expenses (11,424,800) (14,300,000)

Net Income 7,875,200 11,200,000

2. Using Duo point Analysis

Profit Margin = Net Income / sales

7,875,000 * 100% 11,200,000 * 100%

42,800,000 56,000,000

= 18.4% 20.0%

Investment Turnover = Sales / Invested asset

42,800,000 56,000,000

34,240,000 70,000,000

= 1.25 0.8

Return on Investment using Duo-point = Profit margin* Investment turnover

Business dividion = 18.4% *1.25 = 23%

Consumer division = 20% * 0.8 = 16%

3. Residual Income

Business dividion Consumer division

Net income $7,875,200 $11,200,000

Imputed cost* (3,424,000) (7,000,000)

Residual Income 4,451,200 4,200,000

4. Evaluation of performance of eaxh division

In term of profit, consumer division perform better than business division but in term of return on investment, business dividion has better performance. in term of residual income, business dividion is better in tem of performance than the consumer division.

Explanation:

7 0

3 years ago

Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvest

noname [10]

Answer:

The correct option is (A) price; reinvestment

Explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

4 0

3 years ago

Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the bar

ANTONII [103]

Answer:

Fredonia Barber Shop

a. Variable costs per haircut = $4.40

Total monthly fixed costs = $8,910

b. Break-even point in units = 1,350

Break-even point in sales dollars = $14,850

Net income with 1,670 haircuts = $2,120

Explanation:

a) Data and Calculations:

Fixed costs:

Wages of barbers per month = $6,900 ($1,380 * 5)

Manager's allowance per month = $535

Advertising per month = $270

Rent per month = $1,010

Utilities per month = $160

Magazines per month = $35

Total fixed costs per month = $8,910

Ivanhoe currently charges $11 per haircut.

Variable costs per haircut:

Commission per haircut = $3.75

Barber supplies per haircut = $0.50

Utilities per haircut = $0.15

Total variable costs per unit $4.40

Contribution margin per haircut = $6.60 ($11 - $4.40)

Contribution margin ratio = 0.6

Break-even point in units = $8,910/$6.60 = 1,350

Break-even point in sales dollars = $8,910/0.6 = $14,850

Net income assuming 1,670 haircuts for a month:

Sales revenue = $18,370 ($11 * 1,670)

Variable costs = 7,340 ($4.40 * 1,670)

Contribution $11,030

Fixed costs 8,910

Net income $2,120

8 0

3 years ago

Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the

KATRIN_1 [288]

Answer:

Cost of Equity 16.33%

Explanation:

We solve for this using CAMP:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.0387

premium market = (market rate - risk free) 0.0903

beta(non diversifiable risk) = 1.38

$Ke= 0.0387 + 1.38 (0.0903)$

Ke 0.16331 = 16.33%

We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.

8 0

3 years ago

True or false? you have to be careful because other people will try to steal your idea￼.

True or false? you have to be careful because other people will try to steal your idea.