Answer:
D. Acquardica, whose market value of final goods is $170 billion and market value of final services is $90 billion for a year
Explanation:
GDP gross domestic product is the value of final goods and services produced within a year.
Therefore Option D indicates highest GDP of final goods/services produced for a year.
Answer:
Explanation: Cost of equity can be defined as the return that the investors demand for bearing the risk of ownership in company's equity shares. It can be computed by using CAPM model which is represented as follows :-
cost of equity = risk free rate + beta *(market risk premium)
= 9.15%
Answer:
B. a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price
Demand is elastic if a small percentage decrease in price produces a larger percentage increase in quantity demanded . Total revenue would increase because the percentage increase in Quanitity demanded exceeds the percentage decrease in price.
If demand is elastic, a small percentage increase in price produces a larger percentage decrease in quantity demanded and total revenue increases.
Here, total revenue falls because percentage decrease in price exceeds the percentage increase in price.
Demand is inelastic if a small percentage decrease in price produces a smaller percentage increasein quantity demanded.
Demand is perfectly inelastic if the quantity demanded remains the same regardless of level of price.
I hope my answer helps you
Answer:
The payback period for this project is closest to 2 years
Explanation:
Initial investment = $300,000
Sales = $500,000
Cash variable expenses = ($200,000)
Contribution margin = 300,000
Fixed cash expenses = $150,000
Depreciation expenses = $37,500
Total Fixed expenses: $150,000 + $37,500 = ($ 187,500 )
Net operating income = $112,500
Annual cash inflows = Net operating income + Depreciation
= $112,500 + $37,500
= $150,000
Payback period = Initial investment ÷ Annual cash inflows
= $300,000 ÷ $150,000 = 2 years
