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AleksAgata [21]
3 years ago
15

When a manager develops a cost of capital for a specific project based on the cost of capitalfor another firm which has a simila

r line of business as the project, the manager is utilizing the_____ approach.
Business
1 answer:
jek_recluse [69]3 years ago
6 0

Answer: When a manager develops a cost of capital for a specific project based on the cost of capital for another firm which has a similar line of business as the project, the manager is utilizing the pure play approach.

Explanation: Pure play method is an approach to estimate the cost of equity capital of private companies. To do this, members will go in and exam the beta coefficient of different companies to focus on them.

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What are the three basic tools the federal reserve can use to affect the nation's money supply and implement monetary policy?
Nezavi [6.7K]
The Federal Reserve's three instruments of monetary policy are open market operations, the discount rate and reserve requirements.
4 0
3 years ago
Suppose that households have significantly reduced their consumption of beef in response to a rise in beef prices, and substitut
Gnesinka [82]

Answer: Substitution bias:

Explanation:

Substitution bias explains a possible bias in economic index numbers if they do not incorporate data on consumer expenditures changing from products with a relatively high cost to a product with a cheaper price as the prices changes.

Substitution bias happens or can occurs when prices for products change relative to one another product. Consider how consumer expenditures are reflected in a consumer price index. Consumers will tend to buy more of the good whose price declined, and less of the now relatively more expensive good.

5 0
3 years ago
What is the purpose of Geert Hofstede’s Cultural Dimensions Theory? Review Later To explain why some cultures are not worth time
vovikov84 [41]

Answer:

c. A model to understand key cultural considerations between different countries, so as to inform global business managers of cultural deviations.

d. A model for predicting financial gain across a globalized market.

Explanation:

Culture plays a key role in the advancement of businesses because the local employees have a way of doing things and a system of beliefs that would affect the business in the long-run. So, if businesses want to be successful, managers would have to understand the culture of the people they work with. This prompted the work of Dutch Philosopher Geert Hofstede who classified the cultural orientation of people across six dimensions which include;

Power Distance

Individualism/Collectivism

Masculinity/Femininity

Uncertainty Avoidance

Long-term/Short-term Orientation and

Restraint/Indulgence

The major aim of his work is to provide an understanding of the key cultural considerations between different countries, so as to inform global business managers of cultural deviations. This model would also help managers to predict how successful their business can be given the culture of the area concerned.

7 0
3 years ago
Net capital outflow Select one: a. is always less than net exports. b. could be any of the above. c. is always greater than net
Leona [35]

Answer: d. is always equal to net exports.

Explanation:

The net exports of a country will always equal the net capital outflow of a country. The capital outflow of a country refers to financial assets going from a country to another country.

The reason the net exports and the capital outflows equal each other is that the financial assets will be used to pay for the imports that come into the country and the exports will represent the funds coming into the country so so the exports and imports determine the capital outflow which is why both metrics are the same.

7 0
2 years ago
When you purchase shares of a company in the market, who are you buying those shares from?
leva [86]

Answer:

Investor

Explanation:

A stock is a speculation. At the point when you buy an organization's stock, you're buying a little bit of that organization, called an offer. Investors buy stocks in organizations they think will go up in esteem. On the off chance that that occurs, the organization's stock increments in esteem also.

Investor is a person who purchase shares of a company in the market.

3 0
3 years ago
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