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inna [77]
3 years ago
10

Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 2

0 percent.
Business
1 answer:
valkas [14]3 years ago
8 0
<span>The price elasticity of demand would be -2. When you divide the change in quantity demanded (-20%) by the change in price (10%), as is required to obtain the price elasticity of demand, you get this result.</span>
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Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company
blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

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3 years ago
In early America, a traditional market structure existed when A) merchants purchased goods from England. B) farmers sold produce
defon

In early America, a traditional market structure existed when people bartered goods they produced for goods they needed.

Explanation:

Bartering is the mechanism between two entities without the use of cash in the exchange of trading products or services. When people trade, they are all benefited by receiving goods or services that they need or want.

Bartering does have a benefit as there is something that even people with no money could get for them. Bartering may include exchanging an object for a service.

For eg, in return for a tin of apples from either a tree in their yards you might agree to work for somebody. If you choose to trade for a need, you can save cash for other requirements.

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Answer:

d

Explanation:

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Answer:

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Explanation:

A functional strategy is one that requires the HOW? Do, operate, function, that is, after delimiting the corporate strategy that specifies what to do ?, the functional strategy, indicates how to apply and use resources to achieve what you want to achieve.

A functional area of the company adopts this type of strategy to achieve the objectives embodied in the strategy of the corporation, maximizing the resources available and their productivity. In addition, it seeks the care and development of functional and operational capacity in order to achieve a competitive advantage to the company.

These strategies generate a frame of reference used by the administration of operations and functions to support the organizational and business strategy.

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