Answer:
13%
Explanation:
Expected return on market = ((Expected return - Risk-free rate) / Beta) + Risk-free rate
Expected return on market = ((17.50% - 8%) / 1.90) + 8%
Expected return on market = 9.5%/1.90 + 8%
Expected return on market = 0.05 + 0.08
Expected return on market = 0.13
Expected return on market = 13%
According to Rule of 72, an amount of investment equal to $5,000 with an investment interest with an average of 6 percent will only take 12 years to double the value. The price will be equal to $10,000 after 12 years.
Answer:
selective intervention.
Explanation:
The concept of 'selective intervention' was developed by Oliver Williamson. The concept of selective intervention meant the intervention of large firms in small firms by duplicating their activities to produce net gains.
<u>In the given case, Susan is using a selective intervention strategy as her program is assisting at-risk teens to build communicative skills, attaining academic skills, and exploring career possibilities. In this case, the firm of Susan has replicated the activities of small firms by giving at-risk teens the classes to help themselves to gain net profit</u>.
Thus the correct answer is a selective intervention.
Answer:
The annual financial disadvantage of eliminating the division is $30,000.
Explanation:
contribution margin = revenue - variable costs = $200,000
fixed expenses = $500,000
net loss = $300,000.
If the division is eliminated, only $170,000 of the fixed expenses can be avoided, therefore the company's fixed expenses will remain at $330,000.
Therefore, eliminating the children's division will result in a $30,000 (= $330,000 - $300,000) decrease in net income.
Answer:c. continue to operate her business, but in the long run she will probably face competition from newly entering firms
Explanation:
Monthly revenue = $4500
Monthly Variable costs = $1000
Monthly Revenue is higher than Monthly Variable Costs, Susan's catering business will earn an economic in the short run. SHE should continue to operating.
Susan will face competition in the long run because other firms will want to enter the market because of economics profits in the catering industry.
