3 years ago

The higher the _____ that future earnings may not be achieved, the higher the return on investment investors demand.

1 answer:

8 0

If there is a higher risk on future earnings, then the return needs to be high to meet these risks. Safer stocks tend to have lower rates of return, but are more likely to meet their earnings goals. Stocks with these higher risks inherent will also tend to bring returns that far outstrip these safe investments.

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Who conducts the certifcation election

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Which of the following charitable contributions is not tax deductible?a. Cash donated to a qualified church.b. Clothing donated

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4 years ago

Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to

nlexa [21]

Answer:

Based on the given information related to costs for each of the options, the crossover point for Tim = 6,000 room nights (round your response to the nearest whole number). If the number of room nights is less than the crossover point, then OUTSOURCING (Duffy's Maid Service) is the best option available to Tim. Based on the given room nights that Tim expects to rent (18, 250), the best option is to keep doing the service INSOURCING (doing it himself).

Explanation:

Currently, before outsourcing, Tim's total cost = $228,125 + $61,000 = $289,125. On average, he spends $15.84247 per room.

The Duffy's Maid Service offer would represent a total cost of $337,625 + $25,000 = $362,625 for the same occupation level.

the crossover point for Tim:

12.5x + 61,000 = 18.5x + 25,000

36,000 = 6x

x = 6,000 room nights

(6,000 x 12.50) + 61,000 = (6,000 x 18.50) + 25,000 = $136,000

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4 years ago