Table 2-10 Table 2-10 Shows the Output Per Day of Two Pet

question 5

Multiple Choice

Table 2-10

Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-Refer to Table 2-10.What is Horace's opportunity cost of grooming a dog?

• A)half a bathed cat
• B)two bathed cats
• C)two-thirds of a bathed cat
• D)one and a half bathed cats

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Definitions:

Price-to-Sales Ratio

A valuation ratio comparing a company's stock price to its revenues, used to evaluate the company's size and growth potential.

Industry Life Cycle

The progression through various stages of business growth and decline that an industry experiences, typically including introduction, growth, maturity, and decline stages.

Market Capitalization Rate

A valuation metric that calculates the expected rate of return on an investment in a stock, determined by dividing the company's dividend by the current market price of the stock plus any change in the stock price.

Dividend Payout Ratio

A financial metric that shows what percentage of a company's net income is distributed to shareholders in the form of dividends.