Answer:
A manufacturer would likely make an entry in a market following the long-run process of beginning and expanding production in response to a sustained pattern of profits.
Answer:
(d) All of the above responses are correct
Explanation:
The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.
Beta refers to sensitivity of return from stock with respect to the market return.
Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.
ER = Rf + β (Rm- Rf)
ER= Expected Rate Of Return
Rf= Risk Free Rate of Return
Rm= Return from market
β = sensitivity index of security return to market return
Security Market Line (SML) is a graphic representation of CAPM.
Thus, (d) is the correct option
Answer:
Vertical accountability refers to the ability of
a. individuals and groups to hold state institutions accountable
Explanation:
When discussing accountability in governance, there are different types which include vertical accountability and horizontal accountability.
Vertical accountability refers to the ability of individuals and groups to hold state institutions accountable and horizontal accountability refers to the ability of the legislature to hold the executive accountable.
The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.
One way to calculate debt is to figure out what your income is per week, and divide that by the weekly payments for the car. Lets say you make 3200, and your debt is 450 a week.
As shown below
<em>Income ÷ Payments </em>
3200 ÷ 450 = 0.14
Now multiply that by 100 to get your percentage,
0.14 x 100 = %14
Financial advisors recommend that you keep your debt-to-income ratio under 30%.
Answer:
The company should make the components because incremental costs are $2 less than the purchase price
Explanation:
The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*
*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.
Variable element = $4 x 25% = $1
Fixed element = $4 x 75% = $3
Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,
whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.
