1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nata0808 [166]
3 years ago
13

How to estimate elasticity?

Business
1 answer:
andrezito [222]3 years ago
7 0
The formula for calculating elasticity is: Price Elasticity of Demand=percent change in quantitypercent change in price Price Elasticity of Demand = percent change in quantity percent change in price .
You might be interested in
Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities
Simora [160]

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

#SPJ4

5 0
2 years ago
Hachi is working against a deadline. she must have a term paper written by 8
rewona [7]
<span>Hachi is working against a deadline. she must have a term paper written by 8
a.m. tomorrow. the deadline is an example of a ________. Stress

</span>
6 0
2 years ago
What type of footwear protects you from chemicals and provides extra traction on slippery floors?
pishuonlain [190]
Its rubber boots which protects <span>you from chemicals and provides extra traction on slippery floors.

</span>
4 0
3 years ago
Read 2 more answers
Jacko Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =
Valentin [98]

Answer:

Jacko Inc Costo fo Capitak8.15%

Explanation:

From the gordon model for stock valuation

\frac{divends}{return-growth} = Intrinsic \: Value

<em><u>we clear and solve for cost of equity </u></em>

\frac{divends}{Price} = return-growth

\frac{divends}{Price} + growth = return

$Cost of Equity =\frac{D_1}{P} +g

D1 = D0(1+g)= 0.8 (1.08) = 0.0864

P 57.5

g 0.08

$Cost of Equity =\frac{0.0864}{57.5} +0.08

Ke 0.081502609 = 8.15%

5 0
3 years ago
1. Peter's Audio Shop has a before-tax cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The fir
tia_tia [17]

Answer:

9.14%

Explanation:

The computation of the weighted average cost of capital is shown below:-

Debt = $500,000 × 1.02

= $0.51 m

Preferred = 40,000 × $34

= $1.36 m

Common = 104,000 × $20

= $2.08 m

Total = $0.51 m + $1.36 m + $2.08 m

= $3.95 m

So, Weighted average cost of capital = ($2.08 ÷ $3.95 m × 0.11) + ($1.36 m ÷ $3.95 m × 0.08) + (($0.51 m ÷ 3.95 m × 0.07 × (1 - 0.34))

= 0.057924 + 0.027544 + 0.005965

= 0.091433

or 9.14%

Therefore for computing the weighted average cost of capital we simply applied the above equation.

7 0
3 years ago
Other questions:
  • Which of the following is not considered a credit?
    15·1 answer
  • Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The
    7·1 answer
  • If retention is so much more profitable than acquisition, why have companies persisted for so long in spending more on getting n
    6·1 answer
  • If the demand curve for tickets to a taping of a television show intersects the supply curve for tickets to that show at a negat
    13·1 answer
  • Rebecca wants to buy a new saddle for her horse. The one she wants usually costs $600, but this week it is on sale for $490. She
    11·1 answer
  • Who at Universal Studios hates FORBIDEN JURNY?
    9·1 answer
  • If beginning capital was $110,000, ending capital was $95,000, and the owner's withdrawals were $10,000, the amount of net incom
    11·1 answer
  • Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?
    15·1 answer
  • The __________ provides the same results as a check because it withdraws funds from a checking account.
    10·1 answer
  • Next year's earnings are estimated to be $5. The company plans to reinvest 25% of its earnings at 20%. If the cost of equity is
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!