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galina1969 [7]
3 years ago
8

Nathan owns a quick-lube oil service station. He wants to understand whether his customers are sensitive to price and if he shou

ld raise or lower his price for some of his services. What should Nathan calculate to make his decision?
Business
1 answer:
miv72 [106K]3 years ago
5 0

Answer: Elasticity

Explanation:

 According to the given question, Nathan is basically use the elasticity factor for the purpose of calculation that helps in making various types his decisions as elasticity is one of the main factor that helps in measuring the economical price change.    

 Elasticity is one of business degree in which we used to measure the good change in the services and the price of the products. The elasticity is one of the type of ability that helps in understating the change in the demand of the consumer.

 Therefore, Elasticity us the correct answer.

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An investment made 10 years ago is worth $100,000. if the annual return over these 10 years was 7.20%, then the original investm
GenaCL600 [577]

The original investment amount was $ 68.56 then annual return on investment is 10 years was 7.20% interest.

What is investment?

Investment definition is assets invested in to build wealth and save money on bank, property and projects for specific time period of money.

PV is a present value, FV is a future value, i is interest, n is number of period

PV= FV/ (1 + i) n

PV= 1, 00,000 / (1+7.20%) 10

PV =68.5650014087

As a result, the original amount of investment is 68. 56

Learn more about on investment, here:

brainly.com/question/15353704

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7 0
1 year ago
Cache Creek Manufacturing Company is expected to pay a dividend of $4.20 in the upcoming year. Dividends are expected to grow at
Digiron [165]

Answer: 0.9

Explanation:

The Expected Return on an investment can be calculated using the Dividend Discount Model as it is a key component in thw formula which is,

P = D1 / r - g

where,

D1 is the dividend paid next year

P is the current stock price

g is the growth rate

r is the expected return

With the given figures we have,

84 = 4.20 / r - 0.08

84 ( r - 0.08) = 4.20

r - 0.08 = 4.20/84

r = 4.20/84 + 0.08

r = 0.13

The Expected Return can be slotted into the CAPM formula to find the beta.

The CAPM formula calculates the Expected Return in the following manner,

Er = Rf + b( Rm - rF)

Where,

Er is expected return

Rf is the risk free rate

Rm is the market return

b is beta

Slotting in the figures gives,

0.13 = 0.04 + b( 0.14 - 0.04)

0.13 = 0.04 + b (0.1)

0.13 - 0.04 = 0.1b

b = 0.09/0.1

b = 0.9

Using the constant-growth DDM and the CAPM, the beta of the stock is 0.9

8 0
3 years ago
Enviro Company issues 8%, 10-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the an
elena55 [62]

Answer:

1. Issuer's cash is $262,500

2. Total amount of bond interest is $277,500

3. The amount of bond interest expense is $13,875.

Explanation:

1. Issuer's cash = Face Value × Selling Price

Issuer's cash  = $300,000 × 87.50%

Issuer's cash  = $262,500

2. Discount on bond = $300,000 × 12.5% = $37,500

Interest on bond = $300,000 × 8% = $24,000

Period of bonds= 10 years

Total amount of bond interest = Discount on Bond + (Interest on Bond  × period)

Total amount of bond interest = $37,500 + ($24,000  × 10)

Total amount of bond interest = $277,500

3. Discount on bond = $300,000 × 12.5% = $37,500

Interest on bond = $300,000 × 8% = $24,000

Period = 0.5 years

The amount of bond interest expense = (Discount of Bond ÷ 20) + Interest

The amount of bond interest expense = ($37,500 ÷ 20) + ($24,000 × 0.5)

The amount of bond interest expense = $1,875 + $12,000

The amount of bond interest expense = $13,875.

7 0
3 years ago
During the annual fund-raising drive, the Cancer Society raised $900,000 in pledges of financial support for general operations.
Gnoma [55]

Answer:

$ 870,000

Explanation:

Given data:

The funds raised by the cancer society = $ 900,000

The amount that has been collected back = $ 600,000

The amount that is uncollectible = 10% of the remaining amount

i.e 10% of ( $ 900,000 - $ 600,000 ) = $ 30,000

Therefore,

the net amount of revenue the society should recognize during the current year from this pledge drive is calculated as:

= The funds raised by the cancer society  - The amount that is uncollectible

or

= $ 900,000 - $ 30,000

or

= $ 870,000

4 0
3 years ago
Consider the following model of a very simple economy. Household saving and investment behavior depend in part on wealth (accumu
Mekhanik [1.2K]

Answer:

Equilibrium Y = 462.5 , Equilibrium C = 362.5 , Equilibrium S = 100

Explanation:

  • At equilibrium : Aggregate Demand = Aggregate Supply

[ AD = C + I ] = [ AS = C + S = Y ]

45 + 0.6Y + 0.05 W + 100 = Y → 45 + 0.6Y + 0.05 (800) + 100 = Y

45 + 40 + 100 + 0.6Y = Y → Y ; 185 + 0.6Y = Y

Y - 0.6Y = 185

0.4Y = 185

Y = 185 / 0.4 = 462.5  

  • Consumption C = 45 + 0.6Y + 0.05W

Putting Y value : C = 45 + 0.6 (462.5) + 0.05 (800) → C = 45 + 277.5 + 40

C = 362.5

  • Income Y is either consumed (C) or saved (S). So, Y = C + S

Hence , S = Y - C → 462.5 - 362.5 = 100

Alternatively : As  C + I = C + S

Hence, I = S

Equilibrium Savings = Given Investment = 100

6 0
3 years ago
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