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Explain what a margin of safety is as well as how it can help minimize risk Use examples in your explanation?
Wiki User
∙ 10y ago
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
Wiki User
∙ 10y ago
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What best identifies the reason why producers try to minimize costs and maximizes revenue?
In simple terms... profit ! The bigger the difference in the cost of producing something - to the retail price... the higher the profit margin.
What is the average profit margin for bar and grill?
In Canada the after tax profit margin is 4%
How do you calculate contribution margin rate?
Formula for contribution margin ratio = Sales – Variable cost / Sales
How do you determine the activity and dollar sales at the break even point?
The activity level at the break even point = fixed expenses/unit contribution margin Dollar sales at the break even point = fixed expenses/contribution margin ratio contribution margin ratio = contribution margin/sales
What is an example of margin in economics?
KK
What is a margin of safety as well as how it can help minimize risk. Use examples in your explanation.?
Margin of safety is the difference between the intrinsic value of a stock and its market price. To have a margin of safety, one must manage one's financial needs thriftily.
Explain why buying on margin can be a devastating thing?
Buying on margin can deplete a person's portfolio and can be a devastating thing.
Explain why buying on margin can be a profitable system?
Buying on margin is very profitable in a bull market and leveraging gives profits.
Explain why buing on margin can be a profitable system?
Buying on margin is profitable in a bull market especially when the stocks pay a high dividend.
What is the use of a phase shifting transformer?
minimize congestion, stability margin improvement, line overload reduction, power flow control
Explain how 'segment margin' differs from 'contribution margin'?
Contribution margin is the amount remaining from sales revenue once all variable costs have been removed ie. Contribution Margin = Sales Revenue - Variable Costs Segment margin is the margin available after a segment has covered all of its costs. It's one of the best ways to determine the long-term profitability of a segment. ie. Segment Margin = Segment's Contribution Margin - Fixed Costs traced to the Segment
What is the margin of the blade?
The edge of the blade should be called as edge of the blade. But in practice the cutting edge is probably called as margin of the blade. The expert in English language should explain better.
What best identifies the reason why producers try to minimize costs and maximizes revenue?
In simple terms... profit ! The bigger the difference in the cost of producing something - to the retail price... the higher the profit margin.
Dispersive fade margin?
Just open the link below.. http://grouper.ieee.org/groups/802/16/sysreq/contributions/80216sc-99_13.pdf the explanation is very good !!
What is the continental margin margin?
the margin of the continental
What happens to contribution margin per unit when unit selling prices increase. Illustrate your explanation with an example from fictitious company.?
If there is only increase in selling price per unit without the change in the cost of the product then contribution margin per unit will also increase but if cost per unit is more increase then increase in selling price per unit then contribution margin per unit will decrease.
Explain how return on assets decline given an increase in net profit margin?
If you look at what Return on Assets is comprised of, Net Profit Margin and the Total Asset Turnover, if the firm is having a very slow turnover, the ROA will be declining if the turnover is greater in magnitude to the NPM.
