I think it’s a consignment loan.
Answer:
cost of capital of common stock = 13.38 %
Explanation:
given data
common stock sell = $145
fee charge= 5%
face value = $145 per share
dividend = 7%
growth rate = 8%
to find out
Uber cost of capital of common stock
solution
we get here cost of capital of common stock that is express as
cost of capital of common stock =
+ g ....................1
here D1 is dividend at end year and Po is today price and f is flotation rate and g is growth rate
so we get here
cost of capital of common stock =
+ 0.08
cost of capital of common stock = 0.133763
cost of capital of common stock = 13.38 %
Answer:
b. the purchasing power of their income is reduced.
Explanation:
Income effect is defined as the change in demand of a product that is a result of change in purchasing power of an individual, there are changes in real income.
When there is price increase the number of goods an individual's income can buy is reduced, so his purchasing power reduces. He will demand less of the good.
When there is a reduction in price purchasing power increases and customer can demand for more of the good.
In this scenario the increase in price of automobiles results in reduction in purchasing power, and reduction in amount demanded.
The main mechanism that regulates the market system is the
government. It is because they are the one that sets up and regulates the
system and allows the mechanism of the system to continue as the government is
the one that enforces and controls the demand and supply in the market system.