Answer:
rd+premium = 10.5%
using CAPM = 10.3%
Explanation:
Under bond-yield+ risk-premium approach
This method simply propose to add the bond yield with the estmated risk premium:
0.065 + 0.04 risk premium = 0.105
r_f = 0.055
β = 0.8
(r_m-r_f) = 0.06
0.055 + 0.8(0.06) = 0.103 cost of capital using CAPM
Answer:
sum of government spending
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
The expenditure approach to calculating GDP = Consumption spending + Investment spending + Government Spending + Net Export.
Government spending includes all monies spent by government.
Investment spending is the country's businesses spending on capital.
Consumption spending is the sum of all consumer spending
Net export is export less import.
I hope my answer helps you
False, the reason the prices raise is because of high demand. If people want a product they will buy it at a higher price.
So we first need to find the profit per unit, which means we need to find the number of units sold
profit = (sales price* quantity) - variable cost*quantity - fixed costs
plug in what we know
300,000 = (20q) - 12q-25,000
275,000 = 8q
q= 34,375 units produced. Then take profit/units = 300,000/34375 = 8.73 profit per unit
Now if we sell 5,000 more units, we would have 8.73*5000 = 43,636.36 additional profit
First and foremost is a cliché in the message