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Author Question: If you expect a decline in the price of a stock, you might engage in a short sale. Indicate ... (Read 114 times)

bcretired

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on: Jul 10, 2018
If you expect a decline in the price of a stock, you might engage in a short sale.
 
  Indicate whether the statement is true or false

Question 2

Solar Confectionary develops a new candy bar and plans to sell each bar for 1.
 
  Solar predicts that 1
  million candy bars will be sold in the first year if the new candy bar is produced and sold, and
  includes 1 million of incremental revenues in its capital budgeting analysis. A senior executive in
  the company believes that 1 million candy bars will be sold, but lowers the estimate of incremental
  revenue to 700,000. What would explain this change?
  A) a higher selling price for the new candy bars
  B) cannibalization of 300,000 of Solar Confectionary's other candy bars
  C) a lower discount rate
  D) excessive marketing costs to sell the 1 million candy bars


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Li Jun

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

B


bcretired

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  • Posts: 525
Reply 2 on: Jul 10, 2018
Excellent

steff9894

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  • Posts: 337
Reply 3 on: Yesterday
Great answer, keep it coming :)

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