I think the answer is TASTE or PREFERENCE of the consumer or buyer.
There are 5 determinants of demand. These are:
1) price
2) price of related goods
3) income of buyer
4) taste or preference of buyer
5) expectations
The "made in the USA" is a type of branding that will influence buyer's taste or preference. There are a lot of inference about when goods are tagged as "made in USA".
Answer:
Explanation:
First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;
Maturity of the bond : N = 20
Annual coupon payment; PMT = 8%*1000 = 80
Face value; FV = 1000
Price of the bond ; PV = -1,050
then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)
Next, find the cost of equity (rE) using CAPM;
CAPM; r = risk free + beta (Market risk premium)
rE = 0.0450 + 1.20(0.0550)
rE = 0.0450 + 0.066
= 0.111 or 11.1%
Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;
w = weight of..
rD= pretax cost of debt
WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]
WACC = 0.07215 + 0.015771
= 0.0879
Therefore, WACC = 8.79%
Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.
Answer:
b. if the product fits with the image and corporate strategy
Explanation:
New companies suffer from flood of ideas that may go into the evolution of a new product for it. How to screen them so that most suitable idea may be evolved is called the idea screening. This process reduces the no of irrelevant ideas leading to most relevant one so that product most suitable to their corporate strategy can be selected.
Answer: $137,000
Explanation:
Contribution margin = Sales - Variable expenses
Sales (30 * 20,000) $600,000
Cost of Goods sold(24,000 + 340,000 - 19,000) ($345,000)
Variable selling expense (3.2 * 20,000) ($64,000)
Variable administrative expense (2.7 * 20,000) ($54,000)
Contribution margin $137,000
Cost of goods sold = Beginning merchandise + Purchases - Ending merchandise
