Firm a Has a Stock Price of $35 and 60

question 60

Multiple Choice

Firm A has a stock price of $35 and 60% of the value of the stock is in the form of PVGO.Firm B also has a stock price of $35 but only 20% of the value of Stock B is in the form of PVGO.We know that _________.
I.Stock A will give us a higher return than Stock B
II.an investment in Stock A is probably riskier than an investment in Stock B
III.Stock A has higher forecast earnings growth than Stock B

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

Calculate and understand the significance of the contribution margin ratio.

Interpret cost-volume-profit data through graphical presentations.

Define the concept of unit contribution margin.

Explain the use of regression analysis in estimating cost behavior.

---

Definitions:

Reactivated Need

A previously satisfied need that becomes active again due to changes in circumstances or environment.

Esteem Needs

Esteem needs are a human's desire for respect, self-esteem, and recognition from others, as posited in Maslow's hierarchy of needs.

Promotion

The act of raising someone to a higher position or rank, often accompanied by increased responsibilities and benefits.

ERG Theory

Clayton Alderfer's motivation theory that divides human needs into three categories: Existence, Relatedness, and Growth.