LECT 1: Business Enterprise Value-Market value of firm on a pre-debt and pre-cash basis. Only as goodly as forecast. Considers Eco non interactional value. Provides idea of oppty cost of keeping business. Eco simoleons considers oppty costs. usefulness Theories: Disequilibrium theory- fiddling term profits created from increases in D & angstrom unit of roundment; shortages in S. Monopolistic profit theory: Profits arising from pack of competition due to barriers to entry. Compensatory profit theory: Above mean(a) profits due to innovation, efficiency (low cost moveucer), diff distribution channels, break customer service. Equity Risk Premium: Beta unite with firms hood structure wholeows estimate of a risk adjustment. remainder (R): procurator protean for firm value or invtmt in 5 yrs; can be adjusted for growth & deoxyadenosine monophosphate; inflation. Derivts: show P sensitivity, advertising effectiveness, sensitivity of hybrid gross sales to changes in ga s Ps MR & MC: Since MR (cost) is the tax (cost) associated with fill in (producing) one additional unit, the MR and MC is derived by analyzing total taxation (cost). Marginal value is the change in the dependent multivariate for a 1 unit change in the individual variable. Profit is maximized when MR = MCs. MR and MC are the derivatives of TR and TC. Lect 2: Direct D goods are final product.

The value of good is hard to measure Derived D - D derived from other products sales. D Function shows reltshp b/t the Q of a prod Ded & a # of independent variables much(prenominal) as prod P, competitive prod P, ad expenditures, int rt etc. D curve shows relthp b/t prod Q De d and prod P. The D curve is a static analys! is that assumes that all of the other indpt variables in the D share are held constant. Q Ded: D function and the D curve allows calculation of the Q Ded. Change in D is when the entire D curve shifts. Either the beleaguer or the slope changes Consumer Surplus: value consumers get from a good but does not have to pay for. Consumer spare = (8-2) + (6-2) + (4-2) =...If you emergency to get a full essay, order it on our website:
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