Answer:
The price of goods needs to be increased.
Explanation:
Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.
The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.
The firms Cost of Debt is 9.62%.
Data and Calculations:
Weighted average cost of capital = 11.68%
Cost of equity = 15.5%
Debt-Equity Ratio = 0.65
Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity
= 11.68% - (15.5% (1 - 0.65)
= 11.68% - 5.425%
= 6.255%
Unweighted cost of debt = 6.255%/0.65
= 9.62%
Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.
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Answer:
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Explanation:
Data provided in the question:
Percentage downsize in the workforce = 15% = 0.15
Cost of exit interviews = $100
Normal separation cost = $5,000
Now,
Total separation cost per employee = Cost of exit interviews + Normal separation cost
= $100 + $5,000
= $5,100
Therefore,
The company will have to pay $5,100 per employee in separation costs if these exit interviews are implemented next year
Answer:
the required rate of return i r=0.13%
Explanation:
In order to calculate the required rate of interest in the case of a perpetual preferred stock we will use the following formula:
P(p) = D(p) / r
where P(p) is the preferred price of the stock, D(p) is the preferred dividend price and r is the required rate of interest.
This gives us the following values:
30 = 4 / r
r = 4 / 30
r = 0.13%
Answer: Blue spruce university Basketball games
Explanation: The Sale of Season tickets = $45 *10= $450
while the total revenue accrued after the first game=6800*450=$3,060,000