Answer:
Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.
Explanation:
Answer: TIME UTILITY
When a local Walmart is open 7 days a week, 24 hours a day, it is providing the customers with time utility. Economic utility includes Form utility, Time utility, Place utility and Possession utility. Time utility refers to the availability of products when the customer needs them. In this utility, the company chooses the hours and days when products and services are available to the customers according to the needs of the customers.
Answer:
The correct answer to the following question is option D) everyone receives different level of satisfaction from from the same good or services.
Explanation:
Utility can be defined as a measurement of satisfaction levels that a consumer experiences from the consumption of goods and services. From the above given options only D is correct as every one experiences different level of satisfaction from same good or services. Economists measures utility with a unit they refer to as util. All products doesn't produce same level of satisfaction .
Answer: 9.48%
Explanation:
Given Data
Debts ;
$7 billion
$2 billion
$13 billion
Beta of Fords stock = Beta = 1.50
Market risk premium = Rp = 8.0%
Risk free rate of interest = Rf = 4.0%
Equity rate = 1.7
Market risk rate = 0.8
Risk free rate = 0.03
Therefore;
Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium
= 0.03 + (1.7 × 0.8)
= 0.166
Preferred Stock Cost ( PSC)= Dividend ÷ stock price
= 4 ÷ 30
= 0.1333
Total debt = 13 + 6 + 2 = 21 billion
D% = 13 billion ÷ 21 billion
= 0.619
E% = 6 billion ÷ 21 billion
= 0.286
P% = 2 billion ÷ 21 billion
= 0.095
RD = debt capital at 8% maturity rate
Tc= 30%
Rwac =(w/ preferred stock)
= Re × E% + PSC × P% + Rd ( 1- Tc) D%
Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)
= 0.094803 * 100
= 9.48%
At 30% tax rate Ford weighted average cost is 9.48%