Answer:
OPPORTUNITY COST OF CAPITAL
Explanation: Opportunity cost of capital can be described as the incremental return a company foregoes when ever it is embarking on any internal investments.
The rule tries to show that a firm should only embark on projects or investment that will guarantee a higher rate of return after consideration of all the opportunity costs attached to the capital investment.
If the investment is a marketable security if the opportunity costs of capital is less than the expected rate of return,the investment is considering as a wrong choice.
Given that <span>Kenya
makes sure that her company uses available technologies to listen to
what people are saying.
The strategy Kenya is using to respond to
negative criticism monitor the conversation</span>.
Answer:
C.
Explanation:
Price elasticity of demand (PED) measures the responsiveness of demand after a change in the good’s own price.
Demand is relatively inelastic if the quantity demanded changes less than proportionally to the change in price
.
In this instance, total revenue increases following an increase in price.
Inelastic product is highly unresponsive to changes in price.
If the co-efficient of price elasticity of demand <1, then demand is said to be price inelastic i.e. unresponsive to a change in price Price.
Following a change in price, the total revenue earned by the producing firm will depend on the PED for its product.
If the coefficient of PED is <1, a rise in market price (e.g. from P1 to P2) will lead to an increase in total revenue for the seller of the product.
Answer:
1. To insure the effective operation of an organization.
2. To review compliance with a multitude of administrative regulations.
3. To instill a sense of confidence in management that the business is functioning well and you are prepared to meet potential challenges.
4. To maintain/enhance the organization’s reputation in the community.
5. To perform a “due diligence” review for shareholders or potential investors.
6. Not all policies, practices, and procedures are committed to writing. It is vitally important that companies have a process to ensure that everything stays up-to-date and legal, AND actually works as intended.
Explanation: smort doggo is off to another question
Answer:
0.6%
Explanation:
From the question above the values given are
Treasury security rate= 5.35%
Real risk free rate= 2.0%
Average inflation rate= 2.75%
Market risk premium= ?
The market risk premium can be calculated as follows
Treasury security rate= Real risk rate+Average inflation rate+Market risk premium
5.35%= 2.0%+2.75%+market risk premium
5.35%= 4.75%+market risk premium
5.35%-4.75%= market risk premium
0.6%= market risk premium
Market risk premium is 0.6%
Hence the market risk premium for the 2-year security is 0.6%
