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2 years ago

What enables a oligopoly to form within a market

Business

1 answer:

arlik [135]2 years ago

4 0

It would be too costly to launch a competing business To establish Oligopoly in the market.

<h3>What is a market?</h3>

The entire number of buyers and sellers in the area or region under consideration is referred to as the market.

A market structure known as an oligopoly has a small number of enterprises, none of which can prevent the others from having a large impact.

The market share of the major companies is calculated using the concentration ratio.

Learn more about the oligopoly market:

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Kuhn company is considering a new project that will require an initial investment of $4 million. It has a target capital structu

patriot [66]

Answer:

b. 9.00%

Explanation:

For the computation of WACC first we need to follow some steps which is shown below:-

Step 1

Cost of debt = 5.48% which is explained with the help of attachment.

Given that,

Present value = $1,555.38

Future value or Face value = $1,000

PMT = 1,000 × 11% = $110

NPER = 15 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the cost of debt is

Step 2

Cost of preferred stock = Annual preferred dividend ÷ Price

= $8 × $92.25

= 0.086721

Step 3

Cost of equity = Dividend ÷ (Stock price × (1 - flotation cost)) + Growth rate

= 2.78 ÷ (33.35 × (1 - 0.08)) + 0.092

= 18.26%

WACC = Weight of debt × Cost debt) + (Weight of preference stock × Cost of preference stock) + (Weight of equity × cost of equity)

= (0.58 × (0.0548 × (1 - 0.4)) + (0.06 × 0.086721) + (0.36 × 0.1826068)

= 9.00%

6 0

3 years ago

Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. Total reve

Irina18 [472]

$12,651 million is what I believe the answer is. I might be wrong though.

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3 years ago

Court Inc. produces two types of products - Gizmos and Gadgets. The following information is available related to each product:

anyanavicka [17]

Answer: 1250

Explanation:

Let's go in stages,

Gizmos are sold for $80 and have a variable cost of $36. Subtracting that would give us $44. This is the Contribution margin of Gizmos.

Gadgets are sold for $50 and have a variable cost of $22. Subtracting that would give us $28. This is the Contribution margin of Gadgets.

The text says that 3/4 of goods sold are Gizmos with the rest being gadgets.

Let's account for that using their contribution margins.

This means that Gizmos contribute 3/4 from their CM which we'll calculate as,

= 3/4 * 44

= 33

Gadgets would be

= 1/4 * 28

= 7

The Weighted Average contribution margin for both goods in their selling proportion is therefore,

= 33 + 7

= $40

If they make $40 as the weighted average CM then to find the amount of units needed to break even with a fixed cost of $50,000 can be calculated by dividing the fixed costs by the Weighted Average CM which would be,

= 50,000/40

= 1250

They would need to sell 1250 total units in order to break even with a product mix of 3/4 Gizmos and 1/4 Gadgets.

Please do react or comment if you need any clarification. Thank you.

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3 years ago

Real GDP per hour worked is determined by A. human capital, physical capital, and technology. B. demand, government spending

iren2701 [21]

Answer:

A) human capital, physical capital, and technology.

Explanation:

the effect that an increase or decrease in capital per hour worked will cause to the GDP per hour worked depends on the level of technology applied on the production process. New technologies that significantly increase productivity are capital intensive, e.g. automation, artificial intelligence, computers, etc.

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3 years ago

How is culture relevant to communication?

lisabon 2012 [21]

Explanation:

Culture is relevant to communication because if we did not have cultures there would not be much to talk about or foods to be created e.t.c y

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3 years ago

Read 2 more answers