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2 years ago

The supply curve represents the _ price at which a firm is willing to _.

1 answer:

8 0

<span>The supply curve represents the lowest price at which a firm is willing to accept. The supply curve shows the lowest price the producer is willing to accept for a unit of their product. Producers need to make sure they aren't losing money but selling their products to wholesalers to then sell to the consumer. The producer needs to make a profit off of their product as well. This is where the supply curve comes in, it allows the firm to set the lowest price they can accept when they sell their units off. </span>

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Great Subs Inc., a regional sandwich chain, is considering purchasing a smaller chain, Eastern Pizza, which is currently finance

tatuchka [14]

Answer:

WACC 13.85600%

Explanation:

First we calculate Eastern Pizza CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.08

market rate = 0.12

premium market = (market rate - risk free) 0.04

beta(non diversifiable risk) = 2

$Ke= 0.08 + 2 (0.04)$

Ke 0.16000

Then we solve for WACC

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.16000

Equity weight 0.8

Kd 0.08

Debt Weight 0.2

t 0.34

$WACC = 0.16(0.8) + 0.08(1-0.34)(0.2)$

WACC 13.85600%

The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.

3 0

2 years ago

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess d

ch4aika [34]

Answer:

Option (A) and (D) are correct.

Explanation:

When there is an enforcement by the government for rent control and force landlords to lower the apartment price below the equilibrium level.

This means that there is a fall in the price of apartments then this will lead to increase the demand for apartments by the consumers. Therefore, demand for apartments exceeds the supply of apartments. It will be less profitable for the suppliers to increase the supply of apartments. Hence, this will lead to fall in the quality of apartments because landlords are less interested in the maintenance of the apartments.

Lower price of apartments also results in black market. Most of the landlords are trying to fool the government and charge higher prices from the consumers. This will be done with no proper paper work and legal documentation. So, there is a creation of black market.

5 0

2 years ago

C&K Brewing Company is a microbrewery in western Canada. It produces Maiden’s Honor brand ale, a dark beer called Warrior’s

ehidna [41]

Answer:

The correct answer is letter "A": concurrent .

Explanation:

Concurrent control is adopted to regulate ongoing activities in an organization so that they can meet the company's standards. This type of control is chosen to ensure that the output will have the results expected. It implies measuring the quality of the processes at a certain point in time to determine to continue with them or not.

3 0

3 years ago

Direction: Arrange the following words.

Elis [28]

Answer:

TOWEL
TISSUE
TABLE NAPKIN
TABLE CLOTH

6 0

3 years ago

What is the difference between a checking and savings account?

Nat2105 [25]

A checking account is what you would use to make everyday purchases, and what you usually put the majority of your check into. Savings accounts are used to save money over periods of time. A percentage of your check may go in a savings account that you don't use.

8 0

3 years ago

The supply curve represents the _____ price at which a firm is willing to _____.

The supply curve represents the _ price at which a firm is willing to _.