Answer:
Compensate for the risk
Explanation:
In the context of the scenario given , risk is defined as a form of exposure to a potential dangerous situation.
It is necessary for any person organization facing a risky situation to look for ways of minimizing or avoiding the risk in order to reduce related losses. Risks can be avoided through transfer , rejection , delayed action and compensating the risk,
The method of risk aversion described in the scenario is to compensate the risk.
Compensating the risk is a risk control method of using an alternative means to achieve a particular purpose in order to avoid the related risks to using the initial method.
The amount I will pay for the company's stock today is $42.40.
<h3>How much would I pay for the company's stock?</h3>
The amount I would pay for the company's stock is dependent on the value of the stock. The value of the stock can be determined using the Gordon growth model.
According to the Gordon growth model, the value of a stock is a factor of its dividend, growth rate and the rate of return.
Value of a stock = next year dividend / (rate of return - growth rate)
$2.65 / (11 - 4.75%)
$2.65 / 6.25%
$2.65 / 0.0625 = $42.40
To learn more about how to determine the value of a stock, please check: brainly.com/question/15710204
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Answer: promote economic prosperity
Explanation:
Answer:
Variable overhead efficiency variance= $3,000 favorable
Explanation:
<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 3*15,000= 45,000 hours
Actual quantity= 44,000 hours
Standard rate= $3 per hour
Variable overhead efficiency variance= (45,000 - 44,000)*3
Variable overhead efficiency variance= $3,000 favorable
Well due to lack of effective advertising and no expertise or experience in the field you shouldn’t expect major profit.However when you get more experienced and build a name for your company you will make more profits.
You can get more share capital ect
