Answer:
a. At 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b.
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
t [tex]\simeq[/tex] 4.048
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
Explanation:
Given that:
sample size n = 420
mean [tex]\overline{Y} = 646.2[/tex]
standard deviation [tex]s_{y}[/tex] = 19.5
a. Construct a 95% confidence interval for the mean test score in the population.
The 95% confidence interval for the mean test score can be expressed as:
[tex][ \overline Y \pm Z \times SE( \overline Y)][/tex]
Z value at 95% C.I = 1.96
The level of significance = 1 - 0.95
The level of significance = 0.05
[tex]SE(\overline Y ) = \dfrac{s_y}{\sqrt{n}}[/tex]
∴
⇒ [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{\sqrt{420}}][/tex]
= [tex][ 646.2 \pm 1.96 \times \dfrac{19.5}{20.4939}][/tex]
= [tex][ 646.2 \pm 1.96 \times 0.9515][/tex]
= [tex][ 646.2 \pm 1.86494][/tex]
= [ 646.2 + 1.86494 , 646.2 - 1.86494 ]
= [ 648.06494 , 644.33506 ]
[tex]\simeq[/tex] [ 648.06 , 644.34 ]
Thus at 95% confidence interval, the mean test score in the population =
[ 648.06 , 644.34 ]
b. When the districts were divided into districts with small classes (< 20 students per teacher) and large classes (? 20 students per teacher), the following results were found:
Class Size Average (\bar{Y}) Standard Deviation (s_{y}) n
Small [tex]\overline{Y_1}[/tex]= 657.4 19.4 238
Large [tex]\overline{Y_2}[/tex]= 650.0 17.9 182
The null hypothesis and the alternative hypothesis for this given data can be computed as follows:
Null hypothesis;
[tex]H_o : \mu_1 - \mu_2 = 0[/tex]
Alternative hypothesis
[tex]H_1 : \mu_1 - \mu_2 > 0[/tex]
The t- test statistics score can be expressed by using the formula:
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{SE( \overline Y_1 - \overline Y_2)}[/tex]
where;
[tex]SE ( \overline Y_1 - \overline Y_2) = {\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
∴
[tex]t = \dfrac{\overline Y_1 -\overline Y_2 }{\sqrt{\dfrac{s^2_y_1}{n_1} + \dfrac{s^2_y_2}{n_2}}}[/tex]
[tex]t = \dfrac{657.4-650.0 }{\sqrt{\dfrac{19.4^2}{238} + \dfrac{17.9^2}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{\dfrac{376.36}{238} + \dfrac{320.41}{182}}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{1.581344538+ 1.760494505}}[/tex]
[tex]t = \dfrac{7.4 }{\sqrt{3.341839043}}[/tex]
[tex]t = \dfrac{7.4 }{1.828069759}[/tex]
t = 4.04799
t [tex]\simeq[/tex] 4.048
To determine the P - Value; we have:
P - value = 1 - [tex]\mathtt{\phi}[/tex] ( t)
P - value = 1 - [tex]\mathtt{\phi}[/tex]( 4.048)
P - value = 1 - 0.99997
P - value = 0.000003
Decision Rule: To reject the null hypothesis if P - value is less than the level of significance
Conclusion: We reject the null hypothesis and conclude that there is sufficient statistical evidence that smaller class sizes do give rise to higher test averages.
The holders of ZZZ Corporation's bonds with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $25.00. What is the conversion price
Answer: $28.57
Explanation:
The Conversion price is the price of the bond divided by the conversion ratio.
Price = $1,000
Conversion ratio = 35 shares
Conversion ratio = 1,000/35
= $28.57
"What is Al’s total revenue? 3 pts) B. What are Al’s explicit costs? In numbers (3 pts) C. What is his accounting profit? In Numbers (3 pts) D. List 2( in numbers ) implicit costs that Al has not included. (3 pts) E. What is Al’s pure economic profit (loss)in numbers? ("
Answer:
A. $1,020,000
B.$680,000
C.$340,000
D.$95,000
E.$245,000
Explanation:
A. Calculation for Jon’s total revenues
Using this formula
Jon's total revenue = Amount of fees per person × Number of persons
Let plug in the formula
Jon's total revenue = $1,200 × 850
Jon's total revenue=$1,020,000
B. Calculation for Jon’s explicit costs
Using this formula
Explicit costs = Amount of money that goes for instructors, maintenance, equipment,insurance, depreciation ×Number of persons
Let plug in the formula
Explicit costs= $800 ×850
Explicit costs =$680,000
C. Calculation for the his accounting profit
Using this formula
Accounting profit = Amount of Revenue - Explicit costs
Let plug in the formula
Accounting profit= $1,020,000 - $680,000 Accounting profit=$340,000
D. Calculation to List 2 in numbers 2 implicit costs that Jon has not included
Based on the information given we were told that he is foregoing an amount of $92,000 as wage and 1.5% interest on his amount of $200,000 which is a corporate bonds to start the business.
Hence
Jon total opportunity costs = $92,000 + (1.5%×$200,000)
Jon total opportunity costs = $92,000 +$3,000 Jon total opportunity costs=$95,000.
E. Calculation for Jon’s pure economic profit (or loss) in numbers
Using this formula
Economic profit = Accounting profit - opportunity costs
Let plug in the formula
Economic profit = $340,000-$95,000
Economic profit = $245,000
The main principle behind corporate governance is that the ultimate power to make decisions resides in the hands of _______________________.
Answer:
Board Members
Explanation:
The Board Members are appointed as Stewards for the company by the owners (shareholders). They have a sole role of making sure that the shareholders get a favorable return on their capital with out upsetting the triple bottom line that is People, Profit and Planet (Environment).
Corporate Governance established through regulations or other codes of such as the King IV ensure that each and every board member exercise their required expertise to the benefit of the Company.
The Jennings Group reacquired 2 million of its shares at $50 per share as treasury stock. Last year, for the first time, Jennings sold 1 million treasury shares at $51 per share. If Jennings now sells the remaining 1 million treasury shares at $47 per share, by what amount will retained earnings decline
Answer: $2,000,000
Explanation:
Treasury stock is simply a stock that is bought back by a company while retained earnings are cumulative profit that a company makes after dividends has been paid out.
From the question, gain per share will be: $51 - $50 = $1
Therefore, there will be increase in retained earnings by $1 million.
The deficit per share will be:
= $47 - $50 = $-3
The amount that is declined in the retained earnings will now be:
= $-3 × 1,000,000
= $-3 million
The amount by which retained earnings will decline will be:
= $3,000,000 - $1,000,000
= $2,000,000
Brandon, a U.S. manager, is on a business trip in Tokyo meeting with a group of executives. Brandon receives a gift from one of the Japanese executives. What should Brandon most likely do?
Answer: B) open the gift in private
Explanation:
One of the advantages of globalizaton is that we get to learn about the customs of different societies so that we may appreciate and respect them.
In the above scenario, Brandon should open the gift in private because it is a norm in Japan that when a gift is given to you in the presence of people, it should be opened in private.
This is to avoid embarrassment in case the gift is not up to standard. It also helps to avoid comparison in the case of multiple gifts especially when given to people of different status.
Refer to Scenario 14-4. When the firm increases its output from 150 units to 151 units, its marginal cost is
Answer: $32.05
Explanation:
Marginal Cost is the Cost of producing one extra unit.
The total cost of producing 150 units is;
Total = Units * average cost
= 150 * 24.50
= $3,675
Total cost of producing 151 units
= 151 * 24.55
= $3,707.05
Difference = 3,707.05 - 3,675
= $32.05
Curtis Corporation's noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity
Answer:
The answer is 7.61%
Explanation:
N(Number of periods) = 15 years
I/Y(Yield to maturity) = ?
PV(present value or market price) = $1,165
PMT( coupon payment) = $95
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 15; PV = -1165; PMT = 95; FV= $1,000; CPT I/Y= 7.61
Therefore, the Yield-to-maturity of the bond is 7.61%
Tyson Inc. is currently trading at $18 per share. The company is expected to pay a dividend of $1.63/per share next year. The dividend is expected to growth 2.5% per year into perpetuity, and the cost of equity is currently 10.5%. Using Gordon growth what is the present value of Tyson Inc, and given you answer should you buy or sell the stock
Answer:
$20.38 buy
Explanation:
The computation of present value is shown below:-
Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)
= $1.63 ÷ (10.5% - 2.5%)
= $1.63 ÷ 8%
= $20.38
Fair Price = $ 20.38 and Actual Price = $18.00
As Fair Price is greater than the Actual Price so, the stock is under priced. Therefore advice to buy.
"Al quit his job as a manager at North End Savings bank where he earned $105,000 a year. He cashed in $300,000 in corporate bonds that earned 2% interest annually to set up a gym. Al has decided to buy a store front and set up exercise classes. There are 900 people who will pay $1200 a year for unlimited classes; $850 from each person goes for"
Answer:
the question is incomplete, so I looked for more information:
"...for instructors, rent, maintenance, equipment, insurance, depreciation etc.
Write your answers to the following questions on the answer sheet.
A. What are Al’s total revenues?
B. What are Al’s explicit costs?
C. What is his accounting profit?
D. List 2 in numbers 2 implicit costs that Al has not included.
E. What is Al ’s pure economic profit (or loss) in numbers?"
a) Al's total revenues = 900 x $1,200 = $1,080,000
b) Al's explicit costs = 900 x $850 = $765,000
c) accounting profit = $1,080,000 - $765,000 = $315,000
d) implicit costs = $105,000 (in lost wages) + $6,000 (in lost interests) = $111,000
e) pure economic profit = $315,000 - $111,000 = $204,000
Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest.
Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2017, for a period of 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000, on May 1 and November 1 of each year plus 6 months of interest. Determine the current portion of the note payable and the long-term portion of the note payable at October 31, 2018.
Answer:
Cookie & Coffee Creations Inc.
a) Current Portion of Note Payable:
= $4,000
b) Long-term Portion of Note Payable:
= $6,000
Explanation:
Data and Calculations:
Date of Note Payable = November 1, 2017
Period = 3 years
Interest rate = 5%
Terms of payment:
Fixed principal payments = $2,000
Payment dates = May 1 and November 1
Each year's principal repayment = $4,000 ($2,000 x 2)
From November 1, 2017 to October 31, 2018 = $4,000
At October 31, 2018, Payment made = $2,000 on May 1
Remaining Note payable = $10,000 ($12,000 - $2,000)
Current Portion = $4,000 ($2,000 x 2)
Long-term Portion = $6,000
b) The current portion of $4,000 will be payable on November 1, 2018 and May 1, 2019. The current portion represents the short-term portion of the note payable, which is the portion that will be settled within a 12-months' period. Since Cookie & Coffee Creations Inc. had already paid $2,000 on May 1, 2018, the long-term portion will only remain $6,000 ($12,000 - $2,000 - $4,000), which is the difference between the total note payable, the portion paid on May 1, 2018, and the current portion of $4,000 that will be payable within one year.
The average total cost of producing electronic calculators in a factory is $10 at the current output level of 260 units per week. If fixed cost is $880 per week, then what is the firm's variable cost? (enter answer as just a number no commas, dollar signs or the like).
Answer:
6.62
Explanation:
total production costs = total output x average total cost per unit = 260 calculators x $10 per unit = $2,600
total fixed costs = $880
total variable costs = total production costs - total fixed costs = $2,600 - $880 = $1,720
variable cost per unit = total variable costs / total output = $1,720 / 260 calculators = $6.61538 = $6.62 per unit
(a) Argue whether or not a firm should continue production if its MR is lower than its AVC. (b) Support your argument with explanations.
Answer: A firm should not continue production when its MR is lower than its AVC.
Explanation:
The goal of every firm is to minimize cost and also maximize profits and therefore the firm will operate at the output level where the marginal revenue and the marginal cost equates.
A firm should not continue production when its MR is lower than its AVC. Here, the firm will incur a higher loss during production as producing will not offset the variable cost. Therefore, it's better to shut down.
KL Electronics has paid a quarterly dividend of $.42 per share for the past two years.This quarter,the firm plans to pay $.42 plus an additional $.05 per share.The firm has stated that it is uncertain whether it will pay $.42 or $.47 per share next quarter.Which one of the following is the best description of the additional $.05 that is being paid this quarter?
A) Liquidating dividend
B) Special dividend
C) Extra dividend
D) Stock dividend
E) Normal dividend
Answer:
The answer is C. Extra Dividend
Explanation:
As being stated above(in the answer section), the answer is extra dividend.
Extra Dividend is the form of dividend paid to shareholders in addition to the normal regular dividend. This usually happens during the period of unexpected high profit.
Also, this is paid after the year-end.
If this dividend was paid in form of additional stock being given to the shareholders, then it will be called stock dividend.
Cyberhost Corporation's sales were $225 million last year. If sales grow at 6% per year, how large (in millions) will they be 5 years later
Answer:
$301.10 MILLION
Explanation:
the formula for determine the future value of sales =
P (1 +r)^n
P = Present value = $225 million
R = interest rate = 6%
N = number of years = 5
$225 million(1.06)^5 = $301.10 MILLION
The insurance policy, together with the policy application and any added riders form what is known as
Answer:
certificate of coverage
Explanation:
All of this forms what is known as a certificate of coverage. These are all the forms detailing all of the benefits you and your dependents have under the insurance plan that you are currently enrolled in. This also clearly details all of the services and benefits that are not included in the insurance policy and are described as exclusions to the policy. This is not to be confused with a certificate of Creditable Coverage (COCC) which is only a document that proves that your insurance has ended.
The four kinds of structural organizational change enabled by IT, in order from least to most risky, are:
Answer: automation, rationalization, redesigning, and paradigm shift.
Explanation:
The four kinds of structural organizational change enabled by IT, in order from least to most risky, are automation, rationalization, redesigning, and paradigm shift.
In automation, it should be noted that the employees are typically enabled to perform tasks more efficiently. Paradigm shift has to do with fundamental changes that occurs with the underlying assumption
A Bond With An Annual Coupon Rate Of 55% Sells For $970. What Is The Bond’s "current Yield"?
Answer: Bond’s current Yield =56.7%
Explanation:
if the annual coupon rate = 55%
then the bond annual coupon payment assuming a 1000 par value will be
= 55% x 1000 = 550
Current yield = actual coupon payment / current bond price
= 550 /970= 0.567 = 56.7%
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production
This question is incomplete, the complete question is;
Martinez company's relevant range production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:-
Average cost per unit
Direct materials $7.00
Direct labor $4.50
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $4.00
Fixed selling expense $4.00
Fixed administrative expense $2.10
Sales commissions $1.10
Variable administrative expense $0.55
If 8,000 units are produced,
a) what is the total amount of manufacturing overhead cost incurred to support this level of production
b) What is this total amount expressed on a per unit basis
Answer:
a) the total amount of manufacturing overhead cost incurred to support this level of production is $51,200
b) What is this total amount expressed on a per unit basis is $6.40
Explanation:
a)
Given that;
number of units produced is 8,000 units
Variable manufacturing overhead is $1.40
Variable manufacturing overhead cost will be units produced / Variable manufacturing overhead
so Variable manufacturing overhead cost = 8000 units × $1.40 = $11,200
Now Fixed manufacturing overhead cost = 10000 units × $4 = $ 40,000
Total manufacturing overhead cost is the addition of Variable manufacturing overhead cost and Fixed manufacturing overhead cost
$11,200 + $40,000 = $51,200
b)
Number of units produced = 8,000
therefore Manufacturing overhead per unit = Total manufacturing overhead cost / Number of units produced
51,200 / 8,000 = $6.40
Rainbow, Inc. began operations on January 1 of the current year with a $13,000 cash balance. Forty Five percent of sales are collected in the month of sale; 55% are collected in the month following sale. Similarly, 15% of purchases are paid in the month of purchase, and 85% are paid in the month following purchase. The following data apply to January and February: January February Sales $ 45,000 $ 65,000 Purchases 35,000 50,000 Operating expenses 8,000 10,000 If operating expenses are paid in the month incurred and include monthly depreciation charges of $3,500, determine the change in Rainbow’s cash balance during February.
Answer:
$10,250
Explanation:
cash account January:
January 1 = $13,000
cash collected in January = $20,250
purchases paid in January = ($5,250)
operating expenses (not including depreciation) = ($4,500)
Ending cash balance January 31 = $23,500
cash account February:
February 1 = $23,500
cash collected from January sales = $24,750
cash collected from February sales = $29,250
January purchases paid = ($29,750)
February purchases paid = ($7,500)
operating expenses (not including depreciation) = ($6,500)
Ending cash balance February 28 = $33,750
change in Rainbow’s cash balance during February = $33,750 - $23,500 = $10,250
Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.
E(Rp)= 12%
Standard deviation of P 7.20%
Tbill rate 3.60%
Proportion of complete portfolio in P 80%
Proportion of complete portfolio in T bills 20%
Composition of P
Stock A 40%
Stock B 25%
Stock C 35%
Total 100%
What is the expected return on Bo's complete portfolio?
A) 10.32%
B) 5.28%
C) 9.62%
D) 8.44%
E) 7.58%
Answer:
A) 10.32%
Explanation:
Calculation for the expected return on Bo’s complete portfolio
Using this formula
Expected return =(Proportion of complete portfolio in P×E(Rp))+Proportion of complete portfolio in T bills×Tbill rate)
Let plug in the formula
Expected return=(80%×12%) + (20%×3.60%)
Expected return=0.096+0.0072
Expected return=0.1032×100
Expected return=10.32%
Therefore the expected return on Bo’s complete portfolio will be 10.32%
Which of the following statements concerning income tax rate structures is false?
a) Under a progressive rate structure, the marginal rate and the average rate are equal
b) Under a regressive rate structure, the average rate for low-income individuals is more than the average rate for high-income individuals
c) Under either a regressive, proportionate or progressive rate structure, high-income taxpayers pay more dollars of tax than low-income individuals
d) In theory, a progressive rate structure results in equal economic sacrifice across taxpayers
e) Under a proportional tax system the average tax rate and the marginal tax rate are equal.
Answer:
a) Under a progressive rate structure, the marginal rate and the average rate are equal
Explanation:
There are basically three types of tax structure which are as follows
1. A regressive tax levied the similar percentage in the goods that are purchased irrespective of the income of the buyer it would not be good for the poor earners
2. A proportional tax levied the similar tax rate for all types of individuals irrespective of the income
3. A progressive tax levied the high percentage who has higher income as they can afford to pay more and the lower percentage for the lower income and vice versa.
So based on the given options, the option A is false and hence the same is to be considered
On January 1 of the current year, Jimmy's Sandwich Company, Inc. reported stockholders' equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the business paid $20,000 to the stockholders. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in stockholders' equity during the year was:_________
a) A decrease of $9,500.
b) An increase of $9,500.
c) An increase of $30,500.
d) A decrease of $30,500.
e) An increase of 73,500.
A.nswer:
a) A decrease of $9,500.
Explanation:
Calculation for the change in total stockholders' equity
Using this formula
Change in total stockholders' equity = Total Revenues amount - Total Expenses amount - Dividends amount
Let plug in the formula
Change in total stockholders' equity =$96,000 - $85,500 - $20,000
Change in total stockholders' equity = Decrease of $9,500
Therefore the change in total stockholders' equity during the year was: a decrease of $9,500
Sometimes employees have different opinions about how things should be done, or simply have a personality conflict, and then Candace fulfills the
Answer:
disturbance handler role of management
Explanation:
Note that a manager not only directs employees but also resolves disputes among employees. In this scenario, Candace plays the disturbance handler role of management which involves a manager to fairly use his position of authority to resolve conflicts among employees.
Under SEC rules, filing of the Form 144, required when selling restricted stock, is the responsibility of the:________. A. issuer B. broker-dealer C. seller D. transfer agent
Answer: C. seller
Explanation:
The filing of SEC Form 144 is the responsibility of a representative of the company that wishes to sell the stock. The company can be represented by an executive officer, a director, or a recognised affiliate of the company.
This form is filled when the restricted stock to be sold either exceeds 5,000 in number or would command a price greater than $50,000.
The city of Hartwell spends about $3 million annually on snow removal. The city is considering amending its real property tax law to allow homeowners to offset the cost of private snow removal against their annual property tax liability. This amendment would affect the:
Answer: efficiency of the tax
Explanation:
From the question, we are informed that the city of Hartwell spends about $3 million annually on snow removal and that the city is considering amending its real property tax law to allow homeowners to offset the cost of private snow removal against their annual property tax.
It should be noted that the amendment to the affect the efficiency of the tax. The aim of the amendment in this case is to help change the behavior of the taxpayer by giving out rewards to the people who remove their own snow.
7. List and explain 3 things that make you enthusiastic about learning?
Answer:
1) Reward
2) Enjoyment
3) Personality Growth
Explanation:
Learning Business
I opted for Business because it is very easy as compared to other subjects.
It is applicable anywhere anytime.
It is rewarding in terms of rules and regulations.
Otherwise Learning
It enhances your abilities making you a strong enough person to fight any challenge.
It is always rewarding. It pays you one way or other.
It polishes and nourishes your personality to an extent where you feel better adapted towards life.
It is an enjoyment in the sense that it makes you see how well you use your abilities. For example I like mathematics and I enjoy doing it. Some people like drawing and they enjoy it.
"A customer directs his broker to "Sell 100 shares of ABCD stock and use the proceeds to buy 100 shares of XPDQ stock." This is a:"
Answer: Proceeds transaction
Explanation:
In a proceeds transaction, the broker is involved in two related transactions which are the selling of one stock and the buying of another.
Proceed transactions involve a customer asking their broker to sell their stock and then use the proceeds gained from that sale to buy another stock which is what the customer did when he directed his broker to sell ABCD stock and use the proceeds to buy XPDQ stock.
____ projects are a set of projects where the acceptance of one project means that other projects cannot be accepted.
Answer:
Mutually exclusive
Explanation:
Mutually exclusive projects are projects where if you accept one project, the other project has to be rejected.
For example, a company has $250,000 to invest in a project. It can either choose to build a warehouse or buy an equipment. Both projects cost $250,000. Because of the limited capital, only one project can be chosen. This is an example of a mutually exclusive project
Why are valuations of privatized businesses previously owned by the governments of developing countries more difficult than valuations of existing firms in developed countries? Name and explain the seven reasons.
Answer of Explanation:
Following are seven reasons why valuation of privatized businesses are more difficult in a developing country:
Future cash flows can not be estimated accurately and its competitors might be far away or their might be no competitor in this market.Developing countries don't have sufficient data related to industry players operating in the area of firm that has to be valuated. The data that will be missing would be the market share and market growth etc.The exchange rate will be changing very significantly that it poses significant question mark on the accuracy of the valuation of business.The level and type of funding that can be used to flourish business is doubtful. This means we don't know if anyone is willing to lend us money and how much the lending will cost to the company.The risk associated with the business is also doubtful.The economic situation are uncertain which means we don't know the future of the business.The part of business might be controlled by the government which might result in a control conflict in the future.What type of value may consumers be interested in if they are looking for the potential rate of return
Answer: Investment Value
Explanation:
The Investment value of a project is the amount that an investor believes the project is worth to them. There are certain parameters to decide this but the most important is the potential rate of return.
The Potential rate of return tells the investor how much they can expect as returns should they invest in such a project. If it is high, the investment value will be high as well.