Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return? Do not round your intermediate calculations.
A. 4.51%
B. 5.50%
C. 4.68%
D. 4.29%
E. 6.38%
Answer: B
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Which of the following statements about the break-even point is true?
A) It is used to determine how many more units need to be sold to increase market share by a specific amount. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during an accounting period. D) It is a technique marketers use to examine the relationship between supply and demand. E) It is calculated using contribution per unit costs and total fixed costs.
Under the perpetual inventory system, in addition to making the entry to record a sale, a company would
A) record an increase in inventory corresponding to the amount of the sale. B) record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold. C) record an increase in inventory corresponding to the cost of the inventory. D) make no additional entry until the end of the period.
Emmanuelle has made an initial approach to the largest home goods retailer in Australia and has gained some basic information about the retailer's buying process. She has also made contact and established rapport with key buyers for the retailer
What is Emmanuelle's next step in the presentation plan to the retailer? A) making an initial introduction so the buyers know who she is B) talking to the buyers to determine their needs C) asking for the sale D) making a formal sales presentation, including presenting benefits E) negotiating the price the retailer will pay
Customers substituting the firm's product for a competitor's product is
A) market growth. B) stealing share. C) forward selling. D) forward buying.