Answer:
c. Cost of equity
Explanation:
The term used to refer is the cost of equity because this cost ‘represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership’. Kate’s 100 shares represent her rate of return in investing in ABC stock, representing her cost of equity spend on that ABC stock. Moreover, Katie chose well investing using this method because in the long run returns more profit than the cost of debt, where she would collect exactly how much she invested, but no interest rate on it.
Answer:
recognition lag, implementation lag, and impact lag
Explanation:
Answer: D. flat, because firms are reluctant to give their current workers raises when output is so low
Explanation:
When low levels of output are being produced, the supply curve will be flatter to show that goods are not too highly priced. This is because the goods are not costing as much to make because producers are unwilling to increase the wages of their current workers with such low output. Labor costs will therefore be kept below a certain level which will keep prices low.
Answer:
Sunk-cost Bias.
Explanation:
As Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that the company has already spent too much money on the training to simply abandon it. Malik is experiencing sunk-cost bias. He has started believing that he has wasted his money which can't be recovered back in any way and it is irrevocable. It is like when you send on something and you do not get the required results and you start believing that you cant get your money back. For example, when you get the membership of a gym to loose your weight but after 2 or 3 months, you feel that you are not loosing weight, then you can consider the amount spent on the membership as a sunk cost.