Answer:
The answer is A.) Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.
Explanation:
Answer:
$6.25
Explanation:
Use the dividend discount model the Gordon growth model
given
expected dividend per share = $0.50
growth rate =7%
Required rate o return = 15%
P = D1/r-g
=0.50/0.15-0.07
=$6.25
Answer:
Diversification
Explanation:
The key words here are 'several businesses'. A company engage in many businesses in order to mitigate or reduce its business risk, and also to create and add more value to customers. This offers a far advantage position than a stand alone entities who deal with only one product or service.
Answer:
Explanation:
a) WACC of computer sales division:
Cost of equity = 4.3%+1.18×5.9%
=11.262%
WACC =(65300/(65300+705))×11.262%+(705/(65300+705))×6.2%×(1-35%)
=0.99*11.262% + 0.01*6.2%*0.65 = 11.15%+0.0403% = 11.2%
b. 12.5% = 43%×11.2%+57%×WACC (software div)
12.5% = 481.6% + 57%WACC
57%WACC = 469.1%
WACC (software division) = 8.23%
Answer:
The marginal cost to Marilyn of a cup of coffee is $2.50
Explanation:
Marginal cost = change in cost/change in quantity = $7.50 - $5.00/3 - 2 = $2.50/1 = $2.50