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mezya [45]
2 years ago
9

​zecola is a beverage manufacturer. it presents wyb, a zero-calorie drink to compete with we fresh's shire, a low-calorie drink.

when wyb is released in the market, we fresh cuts down the price on shire to match wyb's price. this scenario is an example of a(n) _____.
Business
1 answer:
xenn [34]2 years ago
8 0
The answer to this question is Response
Response is the action that taken by company after experiencing a certain stimulus from the situation in the market.
In this case, zecola response the action taken by its competitor in order to maintain it's positioning in the market
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An impaired driver refers to someone who is under the influence of alcohol and is driving. If you are sharing the road with such a person, it is safest to drive behind such a person. You can take further action by parking beside the road, note down the vehicle's number and then call the appropriate patrol or emergency to inform them about the driver. This will ensure that such a driver is gotten off the highway. 
7 0
3 years ago
Biden Resorts Company currently has 0.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has
frutty [35]

Answer:

Hence, the weighted average cost of capital is 15.87%.

Explanation:

We have to find current weights,  

Value of equity = Shares x Share price = 0.2 x 10 = $2 million  

Face Value of Bonds FV = $1 million

Semi annual coupon P = 1 x 8% / 2 = $0.04 million

Number of coupons remaining n = 5 x 2 = 10

Semi annual yield r = 13.65% / 2 = 6.825%

Value of Debt = Px [1 - (1 + r)-n] / r + FV / (1 + r)n

= 0.04 x [1 - (1 + 0.06825)-10] / 0.06825 + 1 / (1 + 0.06825)10

= $0.8 million

Total Value = 2 + 0.8 = $2.8 million

Weight of Debt = 0.8 / 2.8 = 28.57%

Weight of Equity = 2 / 2.8 = 71.45%

Amount of Debt to be raised = Weight of debt x Capital

= 0.2857 x 7.5

= $2.14 million

Since the amount of debt to be raised is less than $2.5 million, the yield will be 13.65%  

Cost of Equity = Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 3% + 2.2 x (10 - 3)

= 18.4%

The weighted average cost of capital:-  

WACC = Weight of Debt x Cost of Debt x (1 -Tax Rate) + Weight of Equity x Cost of Equity

= 0.2857 x 13.65% x (1 - 0.3) + 0.7145 x 18.4%

= 15.87%

8 0
3 years ago
Which of the following designs safety regulations?
Nat2105 [25]

Answer:

the right answer is A.

Explanation:

because Those responsible for ensuring the health and safety of their workers are the professionals who study the regulation of these standards

8 0
2 years ago
Read 2 more answers
The quantity demanded for cosmetic surgery increased by 12 percent following a period of strong economic growth that raised cons
xxMikexx [17]

Answer:

A normal good

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls. For normal goods, income and quantity demanded are positively correlated.

When income increased, the quantity demeaned for cosmetic surgery also increased. So, this is a normal good

7 0
3 years ago
Suppose the Fed decides it needs to pursue an expansionary policy. Assume people hold no cash, the reserve requirement is 50 per
DENIUS [597]

Answer:

Because the current money multiplier is <u>2</u>, the Fed would <u>BUY $500,000</u> worth of bonds, <u>INCREASING</u> the monetary base and so increasing the money supply by $1 million.

Explanation:

if the Fed wants to increase the money supply by $1 million, then it would need to purchase US securities worth $500,000. The formulas used to calculate the impact of the Fed's operations are:

increase in money supply = additional funds x money multiplier

  • money multiplier = 1 / reserve ratio = 1 / 50% =  2
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$1,000,000 = additional funds x 2

additional funds = $1,000,000 / 2 = $500,000

6 0
3 years ago
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