Answer:
The main function of a business is to add value to the customers they have chosen to serve.
A business simply satisfies a need or want of people and tries to make something convenient and easy for them.
The more a business understand the requirements, needs and wants of their customers, the more they add value and the more they will remain a successfully company.
Explanation:
Excess aggregate demand (AD)
Quick economic growth.
Cost of equity is calculated as -
Cost of equity = Risk free return + Beta * (Market risk - Risk free return)
Given,
Risk free return = 5.3 %
Market risk = 12 %
Beta = 1.05
Cost of equity = 5.3 % + (1.05*(12-5.3%))
Cost of equity = 12.335 % or 12.24 %
Performing calculations and using equipment
