Answer:
relatively flexible
Explanation:
Flexible pricing is when there is room for negotiation of prices of a product between the buyers and sellers.
So the price is prone to change in short amount of time.
Sticky price on the other hand tends to be non negotiable and the does not change over time.in the given scenario prices for airline tickets change on average about once per month.
So there is constant change of the price every month. Meaning the buyer can convince the seller to change his offering price.
The price is relatively flexible
Answer:
$1,050
Explanation:
since these three transactions involved capital gains or losses (investments lasted more than 1 year), they will be taxed using the capital gains tax rate = 15%
total capital gains = $3,000 (painting) + $5,000 (stocks) - $1,000 (other stocks) = $7,000
total taxes due = $7,000 x 15% capital gains tax rate = $1,050
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Answer and Explanation:
a. The computation of the wacc is as followS;
= cost of common stock × weight of common stock + cost of debt × weight of debt × (1 - tax rate)
= 0.16 × 0.70 + 0.08 × 0.30 × (1 - 0.30)
= 0.112 + 0.0168
= 0.1288
= 12.88%
b. The after tax cost of debt is
= 0.08 × (1- 0.30)
= 0.056
So the capital should use the cost of debt
A negative externality or spillover cost occurs when
the total cost of producing a good exceeds the costs borne by the producer.
