If a firm in a purely competitive market can differentiate its product or service, it becomes part of a monopolistic competition market.
Monopolistic competition is a type of imperfect competition in which many manufacturers compete with each other, but sell different products, so they are not perfect substitutes.
These sellers can calculate their prices based on the uniqueness of the products they are offering, so you cannot compete on price. Also, this company that
has full control or is trying to have full control of something, especially has areas of business that no one else is involved with. She didn't think the fines would be a sufficient deterrent to monopoly practices by large manufacturers. The company has been accused of monopolistic conduct.
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Answer:
True
Explanation:
Risk management is the practice of identification of number of risks that the organization faces and then assessing each of them. After assessment of the risks, the organization try to find ways to eliminate or reduce each single risk so that the business operations do not get affected. The precautionary measures can be simply avoid the risk, face the risk, share the risk (Insurance) and reduce the risk to acceptable level.
Brutus co's leverage ratio is 40%
<h3>What leverage ratio?</h3>
- The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds, and other types of debt, is the average after-tax cost of capital for a company. The WACC is the typical interest rate that a business anticipates paying to finance its assets.
- The rate that a business is anticipated to charge on average to all of the holders of its securities in order to fund its
Cost of capital is 6%, its equity cost of capital is 11%, its weighted average cost of capital is 5.8% and its tax rate is 25%.
WACC = (5.8% x 25%) + (5.8% x 11% x 6%)
WACC = 3.973
WACC = 40%
Brutus co's leverage ratio is 40%
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Answer:
Option (D) 16.57%
Explanation:
Data provided in the question:
Realized gain
r₁ = 20%
r₂ = 20%
r₃ = 10%
Now,
Geometric average = ![[(1+r_1)\times(1+r_2)\times...\times(1+r_n)]^{\frac{1}{n}}](https://tex.z-dn.net/?f=%5B%281%2Br_1%29%5Ctimes%281%2Br_2%29%5Ctimes...%5Ctimes%281%2Br_n%29%5D%5E%7B%5Cfrac%7B1%7D%7Bn%7D%7D)
- 1
here,
n = 3
therefore,
Geometric average = ![[(1+0.20)\times(1+0.20)\times(1+0.10)]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B%281%2B0.20%29%5Ctimes%281%2B0.20%29%5Ctimes%281%2B0.10%29%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = ![[1.584]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B1.584%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = 1.1657 - 1
or
Geometric average = 0.1657
= 0.1657 × 100%
= 16.57%
Answer: The project should be accepted.
Explanation:
The Internal Rate of Revenue is used to evaluate projects before they are accepted. It is a rate that equates the Net Present Value of cashflows to zero.
If the IRR is higher than the Required return then the Project will be accepted because it means that NPV will be higher than zero. The reverse is true.
Given the cashflows in the question, the IRR is;
= 18.8% according to Excel.
With the IRR higher than the required return of 8%, the project should be accepted.
