Answer:
The answer is option (C). The firm's required rate of return=11.95%
Explanation:
The required rate of return can be expressed using the formula below;
RRR=RFR+B(MRR)
where;
RRR=required rate of return
RFR=risk free return
B=beta
MRR=market rate of return
In our case;
RRR=unknown
RFR=4.25%
B=1.4
MRR=5.5%
This can be written as;
Required rate of return=risk free return+(beta×market rate of return)
replacing;
RRR=4.25%+(1.4×5.5)
RRR=(4.25%+7.7)=11.95%
The firm's required rate of return=11.95%
Answer:
A period in which the economy is growing at a rate significantly above normal.
Explanation:
The economy experiences relatively fast growth during the expansion process, interest rates continue to be small, output rises and inflationary pressures are building up. Once the economy reaches a low point, the cycle peak is reached, and development starts to recover.
Expansion is sometimes described as the first step in the business cycle, but this is an arbitrary point of departure, here the economy has a constant stream in the supply of capital, and the investment booms.
Answer:
This refers to price elasticity of demand.
Explanation:
The price elasticity of demand (PED) measures how much does the quantity demanded of a good or service changes proportionally to a 1% change in the price of the good or service.
-the percentage change in quantity demanded is 1 percent greater than the percentage change in price.
- ELASTIC DEMAND: when the change in quantity demanded is proportionally greater than the change in price.
-the percentage change in quantity demanded is equal to the percentage change in price.
- PRICE UNITARY DEMAND: e.g. if the price increases by 10%, the demand decreases by 10% (the same proportion).
-the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).
- ALMOST PERFECTLY ELASTIC DEMAND: if a product has a perfectly elastic demand, any small change in price will increase or decrease the quantity demanded to either infinite (price decrease) or zero (price increase). No demand is perfectly elastic, but a demand that changes by 100% more than the price change is very similar to this concept.
-quantity demanded does not respond to changes in price.
- PERFECTLY INELASTIC DEMAND: the quantity demanded doesn't change if the price changes. This rarely happens in real life as well as the perfectly elastic demand.
<u>Explanation:</u>
All the business enterprise should involve in doing community service. CatsCafé in Ontario can enjoy the benefits of CSR activities. Activities that are possible with the available resources at cafe can be used to perform CSR such as donating food to the underprivileged.
You can make CSR as an regular day to day activity at a cafe. When there is excess food cooked for any event or party orders need not be wasted instead can be donated for people in need.
Communication is a key to involve all the 16 employees of the cafe into CSR activities. Employee support through volunteering is important to perform CSR.
As it is a united mission this brings unity among the employees. When information spreads to outsiders they join hands for CSR and the brand image of Cafe will improve in local society.
Promote CSR activities with images and posters of employees volunteering in these activities will increase visibility of the Cafe.
