Answer:
B, decrease the firm's cost of capital
Explanation:
When the tax rate of a levered firm is increased, there is a decrease in the firm's cost of capital because the value of a levered firm is the sum of the market value of the firm's debt and its equity.
An increased tax rate means it has a greater debt and as such the firm's capital after settling tax debt is very reduced.
I hope this helps. Cheers.
It means you have been stopped from making any transactions, withdrawing any money, etc from your accounts.
A. relating a story to someone who is struggling that tells how you dealt with a similar situation
Answer:
determine how to support particular activities in ways that support the overall business strategy and competitive approach.
Explanation:
The primary role of a functional strategy is to determine how to support particular activities in ways that support the overall business strategy and competitive approach.
A strategy sets the overall direction for the business; it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
A functional strategy refers to the action plan designed and established for the day to day operations and smooth running of functional areas in an organization such as procurement, account, sales, marketing, security etc.
Answer:
increased
fell
14.57%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Honest Abe's Used Cars has an elastic demand because its coefficient of elasticity is greater than one. Because demand is elastic, a rise in price would lead to a decrease in the number of cars sold. If price is increased, demand would fall more than the change in price, so total revenue would fall.
4.6 = 0.67 / percentage change in price
Percentage change in price = 0.67 / 4.6 = 0.1457 = 14.57%
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Webs-R-Us services has an inelastic demand.
If prices are increased, demand would fall but it would fall less than the increase in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded