Answer:
Option B is the correct answer.
Explanation 1:
The Break-even point will decrease because higher number of contribution is earned which will cover the cost of the fixed costs or period cost of the firm. If the company has a range of products and wants to decrease the breakeven point then it will have to increase the sales of products that have greater contribution margins per unit (required that there are no limiting factors that limits the production of units).
Explanation 2:
This can also be explained from the following formula:
Breakeven point = Fixed cost / W.Avg. contribution per unit
If the Weighted average contribution per unit is greater which is only possible if the share of the a unit with greater contribution per unit increases in the existing sales mix, then the breakeven point will decrease (denominator increases then the answer would decrease-mathematics).
Hence the option B is the correct answer.
Options:
[A] The new client is a personal friend of the RR who will be in charge of overseeing the new account.
[B] The new client agrees to provide a real address of a home or business, even though he insists that all correspondence be sent to the P.O. Box.
[C] The new client submits a written statement stating that for convenience purposes, he only uses a P.O. Box for all correspondence.
[D] The new client tells the RR and the BOM that he has not yet established a place of residence in the area and that the P.O. Box is the only fixed address he can give.
Answer:
B
Explanation:
Unless the new client provides a real address (either home or office), the account cannot be opened. FINRA regulations do not consider a P.O. Box as an acceptable residential address. The RR can send all the correspondence to the P.O. Box if the client requests it, but the client must still provide a real home or business address.
Answer:
Used in determining whether or not a project is an acceptable capital investment
The difference between the present value of cash inflow and cash outflow of a project
Explanation:
Net present value of a project is an investment appraisal tool that is used in determining the value of all future cash flow that will be generated by a project in order to know the project with maximum profit even right from the onset.
The is done by discounting the present and the future cash flow to the present value and the differences highlighted.
One of the key purpose of the net present value of projects is that it points out whether a project will be an acceptable capital investment or not. When the net present value of cash inflow is greater than the cash outflow, it is indicates a profitable project and vice versa.
Answer:
The price of the bond is $104.15
Explanation:
The price of the company's new two year debt is the present value of its future cash flows.
Since the debt pays coupon semi-annually the number of coupons payable over two years is 4 and pays par value with the fourth coupon.
Yield to maturity is 3.9%+0.8%=4.7%/2=2.35% (semi-annually)
coupon rate is 6.9%/2=3.45%
PMT=3.45%*100
PMT=$3.45
par value $100
nper=2*2=4
Using present value formula in excel
pv=(rate,nper,pmt,fv)
pv=(2.35%,4,3.45,100)
pv=$104.15
Answer:
Aggregate demand curve would shift to the right is the correct answer.
Explanation:
