Answer: d. The market risk premium declines.
Explanation:
The Weighted Average Cost of Capital (WACC) takes into account the cost of equity and debt which means that if either of these costs increase, the WACC will increase as well and if any decrease, WACC will follow suit.
Market risk premium is used in the calculation of the cost of equity when using CAPM in the following manner:
= Risk free rate + Beta * Market risk premium
As can be inferred from the above formula, if the market risk premium declines, a lower cost of equity will result which would then reduce the WACC as well.
Answer: i lkke mend
Explanation: for real the one i like i cant be for the you
Answer:
The coefficient of cross elasticity of demand is negative, and therefore these goods are complements.
Explanation:
Cross elasticity of demand is the proportionate change in the quantity demanded to the proportionate change in the price of the related goods.
Cross elasticity of demand is negative in case of complementry goods as proportionate increase in price of one goods lead to decrease in the demand of related goods as both are complimentry and demanded jointly. Example: Petrol and car.
Cross elasticity of demand is positive in case of subtitute goods as proportionate decrease in price of one goods lead to decrease in the demand of substitute goods. Example: Tea and Coffee.
Answer:
The correct answer is option (D).
Explanation:
According to the scenario, the most appropriate answer is option (D) because value-based based sales-oriented business shows the concept that the seller provides the service of the more value as regarding the money charged to the customer.
While the other options are not correct because of the following reasons:
- Option (A) is not correct because retailing oriented business shows that the seller establishes a shop for the sale and the buyer chooses the product as he likes it.
- Option (B) is not correct because the market-oriented business shows the concept of selling according to the market needs.
- Option (C) is not correct because production-oriented business shows the concept of selling on the basis of production of the product.
A firm can be expressly prohibited from engaging in certain business activities or can be broken into two or more competing firms when it is found guilty of antitrust violations.
<h3>What is antitrust laws?</h3>
These are laws established to protect the interest of the consumers by creating enabling environment for businesses to thrive. These laws prevent unfair business associations such as trusts contribute to competition.
Anti-trust laws are laws, meant to protect the customer from predatory practices by businesses such as collusion hence ensuring that there is competition in the market for the benefit of the consumer.
Learn more about antitrust laws here: brainly.com/question/13800256
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