Answer:
Quantity demanded of matches will remain unchanged, Quantity demanded of tomatoes will rise
Explanation:
Law of demand states that there is an inverse relationship between price of a good and it's quantity demanded, keeping other factors affecting demand as constant.
Price elasticity of demand refers to degree of responsiveness of quantity demanded of a good with respect to a change in it's price.
In the given case, price elasticity of demand for matches is inelastic since requirement of matches is fixed and consumer won't buy additional matches if the price is reduced. Thus a price decease will not increase the quantity demanded of matches.
On the other hand, tomatoes have various uses and thus, their demand is elastic. So if price of tomatoes drops, the quantity demanded of tomatoes would rise, keeping other factors affecting demand as constant.
Answer:
Winkin, with 25 shares of Boat Corporation, qualifies for Section 351 deferral of any gain or loss.
Explanation:
IRC Section 351 has this major requirement; it only applies to the exchange of property for voting stock in the corporation. If any shareholder involved in the transaction receives equity for something other than voting stock, e.g. services; the transaction may not qualify for tax deferral.
Answer:
b. additional costs for attending a college or university.
Explanation:
Textbooks, transportation and room and board are additional costs for attending a college or university.
They aren't included as part of tuition costs.
They are the real costs of attending college.
These costs needs to be considered when choosing a college.
I hope my answer helps you
Answer:
30.92%
Explanation:
Use CAPM (Capital Asset Pricing Model) to find the cost of equity;
cost of equity ;r = risk free rate + Beta (Market Risk Premium)
risk free rate = 4.90% or 0.049 as a decimal
Beta = 2.8
Market Risk Premium = 8.56% or 0.0856 as a decimal
Next, plug in the numbers to the above CAPM formula;
r = 0.049 + 2.8(0.0856)
r = 0.049 + 0.23968
r = 0.2887 or 28.87%
Therefore, cost of equity using CAPM is 28.87%
Next. find cost of equity using Dividend growth model ;
r = (D1/P0) +g
r = (3/13.65) + 0.11
r = 0.2198 + 0.11
r = 0.3298 or 32.98%
Cost of equity using Dividend growth model is 32.98%
Find the average of the two to find the cost of equity of this stock;
= (28.87% + 32.98%) /2
= 61.85%/2
= 30.92%
Answer:
The correct answer is
Explanation:
The Creditor is the natural or legal person who is paid for the purchase or use of a service that is not directly related to the activity carried out in the business.
That is to say, the purchase of the service is made since it must be necessary for the correct and habitual operation of the business.
