Answer:
Im not entirely sure, but i think
2. Should be D
3. Should be A
(i could be wrong but im about 90 percent sure those r right)
Explanation:
Answer:
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.
Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
Explanation:
The cost of equity from retained earnings based on the DCF approach=9.44%
Explanation:
- The cost of equity from retained earnings based on the DCF approach can be calculated as follows,
- Therefore, rs =
+ g
Answer:
1,875,000 Economic Value Added
Explanation:
Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added
This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.
3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes
18,000,000 x 5% = (900,000) Required Return
1,875,000 Economic Value Added
Answer:
C. Choose the price where the quantity demanded equals the quantity supplied because that is the equilibrium condition.
Explanation:
The equilibrium price is the most ideal because at this price the consume is willing to buy, if price goes above this the consumer may look for an alternative and this will further increase surplus.
Also when there is surplus the suppliers will find a way to sell competitively at the equilibrium price.