Which One of the Following Will Increase a Bid Price

question 6

Multiple Choice

Which one of the following will increase a bid price?

• A) A decrease in the fixed costs
• B) A reduction in the net working capital requirement
• C) A reduction in the firm's tax rate
• D) An increase in the salvage value
• E) An increase in the required rate of return

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Definitions:

Variance

A statistical measure that represents the degree of spread or dispersion of a set of data values around their mean.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events happen with a known constant rate and independently of the time since the last event.

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming that these events occur with a known constant mean rate and independently of the time since the last event.