Answer:
A) Price elasticity of demand (PED) = 1
B) the PED is unitary
C) Danny's total revenue will decrease to $562.50
Explanation:
A) the formula for calculating price elasticity of demand is:
PED = % change in quantity demanded / % change in price
- % change in quantity demanded = (300 - 250) / 250 = 50 / 250 = 20%
- % change in price = ($2 - $2.50) / $2.50 = -$0.50 / $2.50 = -20%
PED = 20% / 20% = 1
B) the PED is unitary, it means that for every 1% change in the price, the demand will inversely change in 1%
C) since Danny lowered its price 20% from $2.50 to $2, he sold 20% more brownies, but his total revenue fell from $625 to $600. If he lowers his price even more, this time 25% to $1.50, his total sales will increase to 375 brownies, but his total revenue will continue to fall to $562.50
Answer:
The answer is option ( C.) Increase of 1.06 percent
Explanation:
Data provided in the question:
Cost of equity = 14.6%
Market risk premium = 8.4%
Risk-free rate = 3.9%
Company's beta = 1.4
Now,
Expected Return = Risk-free rate + ( Beta × Market risk premium )
= 3.9% + ( 1.4 × 8.4% )
= 3.9% + 11.76%
= 15.66%
Therefore,
The change in firm's cost of equity capital = 15.66% - 14.6%
= 1.06%
Hence,
The answer is option ( C.) Increase of 1.06 percent
The owner of a business invested $5000 in the business: Assets increase by $5000; Liabilities, no effect; owner's equity increases by $5000. A debit may signify a decrease in Liability, Capital, and Revenue accounts.
Business typically refers to organizations that are searching for earnings by offering items or services in trade for a charge. but, corporations do not need to show a profit to be considered a business. The pursuit of income, in and of itself, makes an organization a commercial enterprise.
Commercial business improves the fine of existence in two ways. first of all, it affords goods and services to the people required for amusement, consolation, and fitness. Secondly, a business offers employment opportunities to human beings by way of which they could generate income and enhance their high quality of life.
“One element successful agencies have in common is … a sturdy client focus,” said John Stevenson, advertising professional at My GRE exam coaching. “they create a subculture that is targeted around their customers and awareness of their techniques, services, and products around their services needs.
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Answer:
See below
Explanation:
a. Earnings per share
= After tax earnings / Number of common shares outstanding
= $3,000,000 / 761,000
= $3.9 per share
b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:
= Common stock market value / Earnings per share
= $40 / $3.9
= 10.26
c. The book value of a share of Bozo Oil's common stock
Book value = (Assets - Liabilities) / Number of shares outstanding
= ($15,000,000 - $9,000,000) / 761,000
= $6,000,000 / 751,000
= $7.88
I have no idea to be honest