Answer:
Option A: is the expected rate of return on a capital investment.
Explanation:
A capital is usually the money used to start up any business.
Cost of capital is simply cost of company's long-term sources of funds: debt, preferred equity and others. It shows how the market views the risk of the firm's assets. A firm must earn required return to compensate investors for the financing the business.
Answer:
2.33 ; demand for movies is elastic
Explanation:
The computation of the price elasticity of demand is presented below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 30 - 15
= 15
And, an average of quantity demanded is
= (30 + 15) ÷ 2
= 22.50
Change in price would be
= P2 - P1
= $8 - $6
= $2
And, the average of price is
= ($8 + $6) ÷ 2
= 7
So, after solving this, the price elasticity of demand is 2.33
Since it is not given by which method we have to calculate it. So, we use the mid point formula.
Based on the above calculation, we concluded that the demand for movies is elastic
A) you own a home
Hope this helped!
