Answer the Following Questions Using the Information Below

question 22

Multiple Choice

Answer the following questions using the information below:
Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.
-What is the Bridal Shoppe's operating income when 200 dresses are sold?

• A) $30,000
• B) $80,000
• C) $200,000
• D) $100,000

Identify the significance of true, full, and plain disclosure in the context of securities regulation.

Understand the concept of a proxy and its relevance in corporate governance.

Understand the legal frameworks governing the securities market in Canada, including both provincial and federal regulations.

Recognize the circumstances under which a brokerage firm can have a financial interest in securities it sells.

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Definitions:

Average Return

The arithmetic mean of a series of returns generated over a period of time.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature at par, representing a safe and liquid investment option.

Canadian Common Stocks

Equity shares issued by Canadian corporations, representing ownership in the company and entitling holders to dividends and voting rights.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.