Answer:
ROI is an very good indicator of a company's overall performance. ROI is calculated as
ROI = Profit After Tax / (Average Total Assets) x 100
It gives us an accurate measure of profitability from a given level of investment. It tells us that how much return we are getting on the investment and allows us to think about our investment strategy.
Manufacturing sector like pharma, fmcg products, automobiles, etc. use ROI as a strategic indicator as the numbers are clearly defined. While in the services sector, it is difficult to use ROI simply because it is difficult to track how much of profit has resulted from the training provided. Still one can calculate ROI if one can relate how much of profit has come from the training/ services provided. In IT services sector ROI is being used.
Explanation:
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. subsequently, a decrease in population decreases the demand for haircuts. In the short run, we expect that the market price will <u>fall </u>and the output of a typical firm will <u>fall</u>.
<h3>
What is Long Run?</h3>
A time frame known as the "long run" is one in which all cost and production components are erratic. Long Run cost adjustments are possible for businesses, although short Run pricing changes can only be influenced by changes in production levels. Even though a company can have a monopoly in the short term, they might anticipate competition in the long run. A long run is a period of time when a producer or manufacturer can be flexible with its production choices. On the basis of anticipated profits, businesses can either increase or decrease their production capacity, or enter or leave a certain industry. Long-term-focused businesses are aware that changing output levels won't bring supply and demand into equilibrium.
To learn more about Long Run from the given link
brainly.com/question/17438349
#SPJ4
Answer:
$96.20
Explanation:
A share of stock is now selling for $90. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of return on the market is 18%
Find complete question above:
The cost of equity=risk-free rate+beta*(market return-risk-free rate)
cost of equity=4%+1*(18%-4%)=18.00%
The price of the stock today is the present value of the price in a year's time and the expected dividend.
Share price today=(dividend+future share price)/(1+r)^n
share price today=$90
dividend=$10
future share price is the unknown
r=18%
n=1( 1 year from now)
90=(10+FP)/(1+18%)^1
90=(10+FP)/1.18
90*1.18=10+FP
FVP=(90*1.18)-10=$96.20
500 desks company should make during each production run.
Lets simplify the problem through simple steps given in the image:
Yearly Working cost = ( 200+ 5x) * 250/x
Total cost = 2x + ( 200+ 5x) * 250/x
Total cost = 2x + 5000/x + 12500
Using minimum cost = 2- 500000/x^2 = 0
x^2 = 250000
x = 500
Hence 500 desks company should be made to run.