Answer:
a-1)
- Project A = 0.70
- Project B = 0.64
- Project C = 0.81
- Project D = 1.29
a-2) Mountain Ski Corp. should choose projects D and C
b) Lakeway Train Co. should choose project B
Explanation:
It’s needed to calculate the coefficient of variation for each project
Formula: CV=σ/μ
Where:
σ = standard deviation
μ = mean
The coefficient of variation (CV) is a ratio that compares the standard deviation with the mean of a project`s return, indicating the volatility and risk of it. The lower its value the better risk-return trade-off. So, a company set up to take large risks such as Mountain Ski Corp. would choose projects with high CV (Projects D and C), and a risk-averse company such as Lakeway Train Co. would choose projects with low CV (Project B).
$4, is the optimal price to charge for a block of 4 units.
Market power is the ability of a firm to influence supply, demand, or both in order to change the price of a product in the marketplace.
A corporation with significant market power has the power to control its profit margin by manipulating the market price. It may also be able to raise barriers for potential new entries into the market.
Because they may set or change the retail price of an item without giving up market share, companies with market power are frequently referred to as "price makers."
To learn more about Market power here
brainly.com/question/14927883
#SPJ4
Answer:
b. an ethical duty beyond those duties mandated by law.
Explanation:
Business ethics involve policies and practices concerning duties that go beyond those mandated by law. Anyhow, the law sets the tone for business ethics as a guideline that a company can follow to foster and gain public approval.
Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
Answer:
b.$20,000 ordinary income and $4,000 net long-term capital gain
.
Explanation:
For 2018, each shareholder should report:
180,000/9 = 20,000
36,000/9 = 4,000
b.$20,000 ordinary income and $4,000 net long-term capital gain