Answer:
The answer is 11.44%
Explanation:
Solution
Given that:
Glass maker has a pre-merger of =$5 debt
Equity =$10
The rate on debt =11%
The risk free rate =6%
Tax rate =40%
The levered beta is =1.36
Equity risk premium is= 4%.
Now,
the next step is to find discount to use for Glass maker free cash flows and interest tax savings
Cost of equity (Ke) = Risk free return + Beta ( Market return - Risk free return )
= 6% +1.36( 10%-6%)
=11.44%
Therefore, the rate to be used to discount free cash flows and interest tax savings is 11.44%
<u>Solution and Explanation:</u>
(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.
(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.
(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit
(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.
B.) Rule of 72; just had this question on Apex and was trying to find the answer but guessed since I couldn’t find it. Posting to save a life!
Answer:
You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your childhood experiences or on any learned behaviors, but rather she emphasizes the importance of your need for love and acceptance. Her approach is BEST described as reflecting humanistic psychology.
Explanation:
Humanistic psychology is focused on each individual's potential and stressed the importance of growth and self-actualization.
Answer:
Sunk cost will be = $70
Explanation:
Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.
In the given instance, Damon Rutton Purchased the ticket of $70
This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.
When he spend some time with his wife sunk cost will be = $70