Answer: True
Explanation: This quiz question explains the relationship between income and demand.
11.55% is the weighted average cost of capital for these funds
Explanation:
Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =
= 76000000/(76000000 + 100000000)
= 43.18%
and proportion of equity = 1 - 43.18% = 56.82%
Therefore, WACC = 0.4318 * 6.1 + 0.5682 * 15.7
= 11.55%
Answer:
There is a direct relationship between perceived risk and external research. The higher the perceived risk, the more external research a consumer will carry out. Perceived risk is not simply fearing that you will make a bad purchase, but it also refers to the costs and benefits associated with the purchase.
The higher the benefits that a consumer can obtain from a purchase, the higher the risk of not getting enough benefits if they make a bad choice. E.g. if you have a lot of good choices available, then you will want to do some more research to choose the best one.
Generally consumers include more brands in their search when they are physically in stores. As consumers we generally consider a very limited number of brands when we shop online, but when we are in a store, we tend to broaden our search and include al the brands that we find.
Answer:
The correct answer is letter "C": will remain the same.
Explanation:
A partnership is an organization with two or more members running a business. They share the profits in percentage terms in proportion to their partnership value. The partnership dissolves and a new partnership is created when one of the partners is removed, retired or deceased or even when a new partner is introduced. The remaining partners' capital will be the same, for accounting purposes.
Answer:
b) A free market in tradable permits is typically more efficient that government regulation
Explanation:
- When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)
- On the other hand, companies that pollute almost nothing can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)
- Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.
- Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes.<em> For example</em>, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.
- The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices.
- Then, pollution rights became an efficient way of assigning a price to pollution.
