Answer: a. 10%
b. -30%
Explanation:
a. What is the percentage change in the price of milk?
Old price = $5.00
New price = $5.50
Percentage change = ($5.50 - $5.00)/$5.00 × 100
= 0.50/5.00 × 100
= 1/10 × 100
= 10%
Percentage change on price = 10%
b. What is the percentage change in the quantity demanded for Boo Berry Cereal?
Old quantity = 1000
New quantity = 700
Percentage change = (700 - 1000)/1000 × 100
= -300/1000 × 100
= -30%
The percentage change in the quantity demanded for Boo Berry Cereal is -30%.
McDonald’s requires $750,000 in cash or liquid assets, a $45,000 initial fee, plus a monthly service fee based on the restaurant’s sales performance and rent.
Explanation:
According to McDonald's, total project expenditures, including construction costs and upgrades, vary from $1 million to $2.2 million. The number is determined by the restaurant geography and scale and the preference of kitchen equipment, branding, design style and landscaping.
McDonald's charges a franchisee premium of $45,000 and a monthly service rate equivalent to 4% of gross sales. Franchisees also have to pay rent, a proportion of the monthly sales to the client.
The International Union of Service Employees estimates that franchisees pay an average of 10.7% of revenue in rental costs.
The startup costs for McDonald's franchisee are like those of KFC, Wendy and Taco Bell.
Answer:
These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.
Explanation:
1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.
2)
For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.
Answer:
Also known as the balance sheet equation, the accounting equation formula is Assets = Liabilities + Equity. ... In other words, all uses of capital (assets) are equal to all sources of capital (debt: liabilities and equity).
