False - because not every business plans work
Answer:
Advertise guppy gums and raskels
Explanation:
Cross price elasticity is used the determine the relationship between two goods. Quantity of compliments increases together, while with subsititutes increase in one results in reduction of the other.
Cross elasticity of guppy gums and raskels= -5/4= -1.25
Negative cross elasticity means the products are complimentary. When price of guppies goes up its demand will reduce, demand of raskels will also reduce
Cross elasticity of guppy gums and kipples= -5/-6= 0.8333
When cross elasticity is positive, the goods are substitutes. As price of guppies goes up its demand goes down, and demand for kipples goes up.
So we will decide to market compliments together because increase in demand for one leads to increase in demand for the other.
We will go with guppy gums and raskels
Answer:
The first option is correct
Explanation:
The number of stock repurchased need to first of all be determined.
The number of shares repurchased is the cash paid for repurchase of shares divided market price of $37.50
Number of shares repurchased=$187,500/$37.50=5,000 shares
number of shares outstanding after repurchase=30,000-5,000=25,000 shares
revised earnings per share=previous earnings per share*previous shares outstanding/the shares outstanding after repurchase
revised earnings per share=$1.22*30,000/25000=$1.464
P/E ratio=market price per share/revised earnings per share=$37.50/$1.464=25.61
Answer:
$100,000
Explanation:
The total amount of loans the banking system can make = total reserves available / reserve requirement = $5,000 / 5% = $100,000
Banks have the ability to create money, since they can lend money to a client, and if that client leaves the money on the bank in a checking account, the bank can lend it again, and the circle goes on and on. This creation of money results from the money multiplier. Money multiplier = 1 / reserve requirement = 1 / 5% = 20