Answer:
The market value of equity should be used.
Explanation:
Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.
So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.
Answer:
The price will decrease and the quantity of the product sold will increase.
Explanation:
The price quoted would be lower because the social costs are not part of the cost of the product. This would increase the demand of the product because financially it is more beneficial and the price demand relation says that when the price of the good decreases the demand of the product increases and vice versa. So this means that the company will earn more but the society will have to bear the cost of the negative impacts.
The effect of low unemployment rate on business is that the productivity of business will fall, and the effect of high unemployment rate on business is that the productivity of business will raise.
<h3>What is unemployment rate?</h3>
The unemployment rate refers to the state of being unemployed. The unemployment rate is derived by dividing the total number of people in the labor force by the number of people who are jobless.
The labor force is the total number of people who are employed and unemployed. A low unemployment rate has the impact of lowering business productivity, whereas a high unemployment rate has the effect of increasing business productivity.
Therefore, the unemployment rate is defined as the state of being unemployed.
Learn more about the unemployment rate, refer to:
brainly.com/question/17255561
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B. To focus on a global market.
Answer:
increase their savings
Explanation:
Saving is the action of putting aside a portion of income in a safe place instead of spending. It is a technique that firms and individuals use to achieve their financial objectives. Consistent saving for a duration of time helps accumulates a substantial amount of money that can be used to actualize financial objectives.
While savings is not the financial objective, it is a means to achieve the actual goal. For Example, if one goal is to own a home or a car, they start saving for the down-payment. Saving helps achieve their long term goals.
