Your answer would be they offer Higher interest rates.
Answer:
The correct answer is Habitual Practice
Explanation:
Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
Answer:
The multiple choices are as follows:
18.6%
14.0%
22.8%
25.0%
The second option is the correct answer,14%
Explanation:
The capital asset pricing asset model formula for computing a firm's cost of equity according to Miller and Modgiliani is given below:
Ke=Rf+Beta*(Mr-Rf)
Rf is the risk free of 2% which is the return expected from zero risk investment such as government treasury bills.
Beta is how risky an investment in a company is compared to similar businesses operating in similar business sector of the company given as 2.0
Mr is the expected return on market portfolio which 8%
Ke=2%+2*(8%-2%)
Ke=2%+2*(6%)
Ke=2%+12%=14%
Answer: 4,840
Explanation: Analysis reveals that a company had a net increase in cash of $22,310 for the current year.
Therefore,
The year-end cash balance - the beginning cash balance = $22,310
The beginning cash balance = The year-end cash balance - $22,310
The year-end cash balance is $27,150
The beginning cash balance = $27,150 - $22,310 = $4,840