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dlinn [17]
3 years ago
13

Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount wou

ld increase sales by: A.50%. B.2%. C.200%. D.25%.
Business
1 answer:
sweet-ann [11.9K]3 years ago
6 0

Answer:

A.50%.

Explanation:

The price elasticity of demand formula is:

PED = Change in quantity demanded / change in price

plugging the amounts into the formula we obtain:

2 = X / 25%

Now, simply solve for X:

2 x 25% = X

50% = X

Thus, the total quantity demanded would increase by 50%

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Barter is the exchange of goods and services for goods and services without the use of money. any exchange, with or without the
murzikaleks [220]

Answer:

c. the exchange of goods and services for goods and services without the use of money

Explanation:

Barter the exchange of goods and services for goods and services without the use of a medium of exchange such as money.

In a barter, money doesn't change hands.

An example of a barter- I want a pair of shoes worth $30. I see someone that has the shoes but wants textbooks worth $30. I have these textbooks. I give him the textbooks and he gives me the shoes.

I hope my answer helps you

8 0
3 years ago
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The role of a labor union is to
devlian [24]

Answer:

D) represent the interests of workers in employment matters.

Explanation:

A labor union is an organization tha acts as an intermediary between its members and the business that employs them. The main purpose of labor unions is to give workers the power to negotiate for more favorable working conditions and benefits through collective bargaining.

8 0
3 years ago
Read 2 more answers
1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.
MrMuchimi

Answer:

1.

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

2.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

1.

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A  +  wB * Beta of B  + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66  +  0.34 * 1.21  +  0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

2.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037  +  1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

3 0
3 years ago
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$218,917 –$16,419 1 25,700 5,985 2 5
cluponka [151]

Answer:

I will choose Project B

Payback period of Project A is 4.2 years

Explanation:

IRR shows the percentage rate at which the net present value of the cash flows are zero. The more IRR rate of the project the more beneficial it is.

IRR

Project A = 31%

Project B = 38%

In this Question the IRR of Project B is higher so, it will be more beneficial and I will select it based on IRR ignoring all other factors.

Payback period of Project A is 4.2 years means 4 years, 2 months and 12 days.

5 0
3 years ago
Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items: 1. Esqui
olga2289 [7]

Answer:

                   Esquire Comic Book Company

                                Income Statement

                For the Year Ended December 31, 2021

Operating income                                                 $1,550,000

Restructuring costs                                                 ($60,000)

Income from continuing operations b/ Taxes     $1,490,000

<u>Income tax expense                                              ($372,500)</u>

Income from continuing operations                                        $1,117,500

Discontinued operations:

  • Operating income                                          $610,000
  • Loss on disposal                                          ($395,000)
  • <u>Income tax on discontinued operations       ($53,750)</u>

Income from discontinued operations                                     $161,250

<u>Net income                                                                             $1,278,750</u>

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

3 0
3 years ago
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