Answer:
creates a shortage
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Because price is set below equilibrium price, demand would outstrip supply and this would lead to a shortage
Effects of a price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
Answer:
Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.
This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.
Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.
The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.
Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .
Commons stock costs is the required return on the retained earnings of a company.
WACC ⇒ D. the average cost of raising new financing.
Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.
Answer:
D: Loss leading
Explanation:
Loss leading or the loss leaders is the concept where we decree the price of certain well known and popular products to such a level that customers are amazed. We even start selling that product below its cost as well. The basic logic behind loss leaders is to increase the store traffic and therefore increasing the sales. For example, if everyone is selling eggs at $2 per dozen, and you get it at $1.5 from the whole seller then you can either sell it at the same amount on which you purchasing it from the whole seller, at $1.5 or even below than this at £1.3. People knows that eggs are usually sols at $1.5 but your concept of loss leading will attract them towards your store, and besides purchasing eggs at $1.3, they will also but many other high profit margins products as well.
<u>Solution and Explanation:</u>
<u>Computation of service years
</u>
Year Jim Paul Nancy Dave Kathy Total * Cost Amortization
2014 1 1 1 1 1 5 * 3000 15000
2015 1 1 1 1 1 5 * 3000 15000
2016 1 1 1 1 1 5 * 3000 15000
2017 1 1 1 1 4 * 3000 12000
2018 1 1 1 3 * 3000 9000
2019 1 1 2 * 3000 6000
72000
<u>Future years of service </u>
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
24
<span>When laborers are out of work, then they can't as often to buy product from business, which in turn the business loose money have to lay their laborers off,which creates a vicious cycle.Then at times the government will come up with their programs to help the business and try to keep the economy going.</span><span />
