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2 years ago

What Is margin of safety?

Business

1 answer:

skelet666 [1.2K]2 years ago

5 0

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

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Sid has decided to leave his $70,000-a-year landscape design job and open a new kayak business. his insurance cost is expected t

Karo-lina-s [1.5K]

Economic profit refers to the profit earned by deducting the implicit cost and the explicit cost from the total revenue.

Economic Profit = Total revenue - (Explicit cost + Impllicit Cost)

where Total Revenue = $100,000

Explicit Cost = $2000 + ($25000*10%) = $4500

Implicit Cost = $70000 + $10000 = $80000

Economic Profit = $100,000 - ($4,500 + $80,000)

Economic Profit = $100,000 - $84,500

Economic Profit = $15,500

Hence, Sid's Economic Profit is equal to $15,500

4 0

3 years ago

As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one

Ket [755]

Answer:

The answer is narrower competitive scope.

Explanation:

In a narrow competitive scope, a business might choose a focus strategy which can be oriented to cost leadership or differentiation. When implementing a focus strategy, the company chooses to only produce goods or provide services to a certain segment of people. In a cost leadership strategy, the business might choose to engage on initiatives that would lead it to be identified from its ability to provide the lowest possible price for its target segment. When choosing a differentiation strategy instead, the company’s competitive advantage would be its ability to provide a wide range of products.

4 0

3 years ago

A manager needs to have summary sales information by product line available to her on a timely basis when purchasing decisions n

juin [17]

Answer:

Management information

Explanation:

From the question we are informed about instance, whereby A manager needs to have summary sales information by product line available to her on a timely basis when purchasing decisions need to be made. In this case, The type of information system most likely to provide this type of information would be classified as a Management information. Management information system can be regarded as a an information system that is been used in decision-making as well as in the coordination, control and analysis or visualization of information in an organization.

Studing of management information systems encompass the people as well as the processes and technology as regards an organizational context.

3 0

3 years ago

Which element of negligence deals with the failure of a person to perform a duty that required them to act in a certain way?

ollegr [7]

<span>A: breach
because a breach is breaking or failing to perform a duty or observing a law.

I hope this helped ya :)</span>

8 0

3 years ago

Read 2 more answers

West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond

slava [35]

Answer:

4.93%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The time period is represented in the NPER.

Provided that,

Present value = $1,000 × 105% = $1,050

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 5.3% ÷ 2 = $26.5

NPER = 25 years - 2 years = 23 years × 2 = 46 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the yield to maturity is 4.93%

6 0

3 years ago