A negative relationship between the quantity demanded and price is called the law of:.

Suppose potential income is $80 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual bu

gogolik [260]

A(4billion)

Because I 4-(5-22)-2

7 0

2 years ago

Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company

blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

4 0

2 years ago

Acoma Co. has identified one of its cost pools to be quality control and has assigned $140,400 to that pool. Number of inspectio

katrin2010 [14]

Answer:

Acoma Co.

Product 1 Product 2

Quality control cost assigned $58,968 $81,432

Explanation:

a) Data and Calculations:

Cost of quality control = $140,400

Number of annual inspections = 30,000

Cost per inspection = $4.68 ($140,400/30,000)

Product 1 Product 2 Total

Number of inspections 12,600 17,400 30,000

Proportion of inspections 42% 58% 100%

Quality control cost assigned $58,968 $81,432 $140,400

($4.68 * 12,600) ($4.68 * 17,400)

(42% * $140,400) (52% * $140,400)

5 0

2 years ago

A fish cannot survive without water and a profession cannot exist without education. Justify this statement logically.

Misha Larkins [42]

Water is the home of fish. If there won't be water then there won't be fish as fish can't survive without water. Similarly, education is like the water and profession is like the fish. Education makes a person skilled, trained, capable to perform a job. If someone tries to do a job without gaining some sort of education then it will be very hard for them to do that particular job properly. Education provides us knowledge and skill to perform any task in a job efficiently and effectively. Education helps to develop one's confidence, knowledge, skills and makes one ready to do any type of job. Education makes a direct contribution to the production of skilled manpower. So without education there won't be any profession.

6 0

2 years ago

Monopolistically competitive markets are characterized by a large number of firms A economies of scale B standardized products C

zavuch27 [327]

Answer:

The answer is B. standardized products

Explanation:

Monopolistic Competition has the following characteristics :

1. There large numbers of buyers and sellers

2. The products offered by sellers are close substitutes for the products offered by another seller.

3. The costs associated with entry and exit are low.

4. Sellers differentiate their products through advertising, branding etc.

Know that the most distinguishable factor in this market is product differentiation or standardized products.

The extent to which the seller is successful in product differentiation determines pricing power in the market.

The demand curve in this market is downward sloping i.e increase in price will lead to decrease in quantity demanded. This market is similar to perfectly competitive market.

The economic profit will fall to zero in the long run because the entry costs are not high.

7 0

2 years ago