Answer:
Reserve. resource
Explanation:
concentration of natural minerals in or on the crust of the Earth with potential to be extracted for profit.
Answer:
a. 10.14%
Explanation:
WACC = wE*rE + wP*rP + wD*rD(1-tax) whereby;
w= weight of...
r = cost of..
Find the market values;
Common equity(E) = 5,000,000* 8 = 40,000,000
Preferred stock(P) = 10,000,000
Debt (D) = 100,000 *1000 *0.96 = 96,000,000
Total value = 146,000,000
Therefore;
wE= 0.2740
wP = 0.0685
wD = 0.6575
Cost of capital;
rE = 19% or 0.19
rP = 15% or 0.15
rD = 9% or 0.09
WACC = (0.2740*0.19) + (0.0685 * 0.15) + [0.6575*0.09(1-0.34)]
WACC = 0.0521 + 0.0103 + 0.0391
WACC = 0.1015 or about 10.14%
Answer:
Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.
In the short run, a 10% increase in price decreases quantity demanded by 4%
PED short run = % change in price / % change in quantity = 4% / 10% = 0.4
PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75
Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.
This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.
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<h3>LEASING:</h3><h3>= $25,000 × 4 Years</h3><h3>= $100,000</h3><h3>= 10% × $25,000 ÷ 100 - $25,000</h3><h3>= $22,500 × 4 Years</h3><h3>= <u>$90,000</u></h3><h3 /><h3>BUYING:</h3><h3>= $60,000 + $40,000</h3><h3>= $100,000</h3><h3>= 10% × $10,000 ÷ 100 - $10,000</h3><h3>= $9,000 × 4 Years</h3><h3>= $36,000 + $60,000</h3><h3>= <u>$</u><u>9</u><u>6</u><u>,000</u></h3>
<h3>LEASING IS A BETTER OPTION</h3>
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