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Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?
Fair Market Value
The price a willing buyer would pay a willing seller in a transaction where both parties have reasonable knowledge of the relevant facts and neither is under compulsion to act.
No-Par Stock
Shares issued without a nominal or face value, where the value is determined by the price investors are willing to pay.
Less-Value Stock
Stock that is currently trading for less than the perceived value of the company, potentially indicating an undervalued investment opportunity.
Profit Allocation
The process of distributing a company's earnings among its shareholders, partners, or other stakeholders according to agreed-upon terms.
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