<em>The nature of the buying unit is not a way business markets and consumer markets differ</em>
<u>Answer:</u><u><em> </em></u><em>the nature of the buying unit</em>
<u>Explanation:</u>
Consumer market is basically a market that is Business to Consumer whereas a business market is mainly B2B market.
Most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals It can be seen that it is due to the market structure and demand. the nature of the buying unit is not a way to differentiate.
Answer:
0.36
Explanation:
Cost of equity of 16.8%,
Pretax cost of debt of 8.1%
Return on assets of 14.5%
As per NN proposition: Cost of equity = Return on asset + D/E ratio (Return on asset-Cost of debt)
0.168 = 0.145 + D/E (0.145 - 0.082)
0.168 - 0.145 = D/E (0.064)
0.023 = D/E (0.064)
D/E = 0.023/0.064
D/E = 0.359375
D/E = 0.36
Thus, the debt-equity ratio is 0.36
Answer:
Unlike perfectly competitive firms, in the long run monopolistically competitive firms face excess capacity or unused capacity. They produced at a higher cost which implies wastage of resources or under-utilization of resources.
Answer:
Nominal rate of return= 10.96%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation. </em>
<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
</em>
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622
Nominal rate of return = 0.109622
× 100 = 10.96%
Nominal rate of return= 10.96%
Answer:
28%
Explanation:
let X = the percentage of ownership of Clor Confectionery
the investment account balance = $150,150 - X$20,500 + X75,650 = $165,550
$150,150 + X$55,150 = $165,550
X$55,150 = $15,400
X = $15,400 / $55,150 = 0.2792 = 27.92% ≈ 28%
