Why are elasticities useful to managers? What are the most prevalence and useful elasticities? Why are price elasticities of demand called "elastic" or "inelastic" when others are not? Why is the demand for an individual firm's healthcare products usually elastic?

Q: price-earnings ratio that is higher than other similar firms

A: A high price-earning ratio implies more price has to be paid for acquiring the stocks of the firm…

Q: Whether the firm uses the​ market-based approach or the​ cost-based approach for pricing​ decisions,…

A: Introduction: Market based approach: For calculating the selling price of Asset firm uses market…

Q: How do the DuPont technique helps the firm’s managers to further analyze its returns?

A: DuPont analysis is referred to as the framework regarding the analysis of the fundamental…

Q: Why do firms not have sunk costs over time? How should managers approach sunk costs when deciding…

A: Answer:-  Sunk cost meaning:- Money which has been already spent and cannot be recouped is known as…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: what is price stability? How does price stability affect business and household?

A: Price stability is when the economy is shifting little or no over a particular time period. This…

Q: Does using cost volume profit sensitivity analysis have any drawbacks or possible negative impacts…

A: Cost volume profit analysis is used to control or monitor a sensitive analysis which depicts changes…

Q: up between owners and managers and how

A: Profit maximization and value maximization are two financial management approaches that define the…

Q: What is return on marketing investment (rOMI)? howdoes considering marketing as an investment…

A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…

Q: Why are secondary market prices relevant for a firm

A: Secondary market can be defined as the market where securities which have been already issued in the…

Q: why buying on margin is less riskier than short selling?

A: Trading on margin is a process of borrowing funds from a brokerage firm in order to execute trade…

Q: What does it mean to use the DuPont model to help explain a decrease in ROI?

A: Introduction: DuPont analysis is done to find out the various drivers that account for the return on…

Q: Which of the following is a typical key performance indicator for the financial perspective?…

A: The question is asking us to identify which of the given options is a typical key performance…

Q: What will happen if a company has a higher P/E ratio? Please answer this thoroughly.

A: P/E ratio  is price to earnings ratio. Formula for P/E ratio=Market value per shareEarnings per…

Q: Check all that apply: O Demand variability O Financial leverage O Competition and the abilit O Input…

A: Business risk are those related to the operations of business.

Q: What is the market economy?How dothe financial marketsinteractwith product and labor markets to…

A: The Market economy is an economy model in which all the decision regarding the demand and supply of…

Q: the best way to calculate the appropriate Discount Rate

A: In the valuation of the companies there is need of discount rate to calculate net present value of…

Q: How does the goal of the firm influence the sales maximization and profit maximization decision.

A: The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the…

Q: What questions should managers answer when considering special pricing orders?

A: Definition:   Special Pricing: When businesses get Special orders from its customers for bulk…

Q: Why do most small businesses operate with less leverage than Miller and Modigliani’s model would…

A: Miller and Modigliani model of capital structure state that in a completely perfect market the value…

Q: lease identify what types of companies would use market-based pricing versus what type of companies…

A: Market-based pricing refers to the pricing strategy that is based on the market environment.…

Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?

A: Cost-based pricing means setting prices based on the cost of goods and services.  The major…

Q: A strong economy leads to Group of answer choices lower productivity higher employment lower…

A: Strong economy means high growth in the economic activity. Economic activity will be improved when…

Q: Distinguish between the downward demand spiral and the ramifications of this for price choices

A: This question tells about  the downward demand spiral and the ramifications of this for price…

Q: What are the key determinants of an industry's profitability? What do you think is the most…

A: Profit is a very important concept in finance. Companies do business and run their operations in…

Q: What are some of the pros and cons of using stockoptions to compensate managers?

A: Employee stock options: Stock options are the non-monetary incentives that are given to particular…

Q: How to incease profitability if PE Ratio, EPS Ratio, and ROE cannot be calculated because of its…

A: Accounting refers to the process of recording, summarizing, interpretation and communicating the…

Q: Explain sales cutoff tests.

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: What is the investment center manager's preferred technique of calculating investment turnover,…

A: It is a unit of a firm that is evaluated based on the usage of its capital rather than the profits…

Q: What questions should managers answer when setting regular prices?

A: Following are the major factors which managers should answer when the regular prices are fixed:…

Q: If a company chooses to minimize WACC, what will be the effect on financial flexibility

A: Basic Terms :- Financial flexibility of the firm is the ability of the firm's capital structure to…

Q: Does your current/future company price discriminate? Explain how the practice works (direct or…

A: Price discrimination is a market strategy in which the vendor charges varying prices for the same…

Q: How do you measure Return on Investment (ROI) of alogistics firm?

A: Return on Investment (ROI) :               It represents the benefits earned by the investor in…