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3 years ago

Economics: A group of competitors who work in unison to control the supply and price of their product is called a

Business

1 answer:

7nadin3 [17]3 years ago

6 0

Answer:

cartel

Explanation:

A "cartel" is a group of competitors or market participants who are independent from each other. They work in unison by cooperating secretly in an unlawful way so they can control the supply and price of their products. In this way, they can dominate the market.

Such type of alliance with rivals have existed since the ancient times. It increased following World War I, but started declining after World War II.

So, this explains the answer.

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Select all the correct answers.

uysha [10]

All of the given questions are part of the critical questions that entrepreneurs need to ask themselves. Being an entrepreneur needs a lot of thinking and planning and these questions should be taken into account. Running a business would include the location fit for the type of business you have, the structure of your business, how you recruit workers and the incentives you give them, and most importantly, your capital.

6 0

3 years ago

Time Warner shares have a market capitalization of billion. The company is expected to pay a dividend of per share and each shar

Ad libitum [116K]

Complete Question:

Time Warner shares have a market capitalization of $50 billion. The company is expected to pay a dividend of $0.30 per share and each share trades for $30. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 30%, what is the WACC?

Answer:

7.5%

Explanation:

We can calculate WACC using the following formula:

WACC = Ke * MV of Equity / (MV of Equity + MV of Debt) + Kd * MV of Debt / (MV of Equity + MV of Debt)

Here:

Market Value of Equity is $50 billion

Market Value of Debt is $15 billion

Ke is % (Step 1)

Kd is 8%

By putting values, we have:

WACC = 8.07% * $50 Billion / ($50 Billion + $15 Billion) + 8% * $50 Billion / ($50 Billion + $15 Billion)

WACC = 7.5%

Step 1: Calculate Ke

We can calculate Ke using the following formula:

Ke = Do * (1 + g) / P + g

Here

Do is the dividend per share which is $0.3

g is the growth rate which is 7%

And

P is the market value of share which is $30 per share.

Ke = $30 * (1 + 7%) / $30 + 7% = 8.07%

4 0

3 years ago

Edelman Oil performs oil changes. The standard wage rate for oil change technicians is $ 17 per hour. By analyzing its past reco

weeeeeb [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The standard wage rate for oil change technicians is $ 17 per hour. standard of 18 minutes (or 0.30 hours) per oil change.

Production= 1,600 oil changes

Actual hours= 310 direct labor hours

the average rate= $ 24 per hour.

To calculate the direct labor rate and efficiency variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (0.3*1,600 - 310)*17

Direct labor time (efficiency) variance= $2,890 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (17 - 24)*310

Direct labor rate variance= $2,170 unfavorable

7 0

3 years ago

A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5. Calcul

Lemur [1.5K]

Answer:

Net Present Value = $28756.79

Explanation:

First we need find the real rate of interest

Real rate of interest = (Nominal rate of interest - Inflation rate )

Real Rate of interest = (10.76% - 4%)

Real of Interest = 6.76%

Now using stream of cash flows and discount the at 6.76%

0 -12800 1.000

1 10000 0.937

2 10000 0.877

3 10000 0.822

4 10000 0.770

5 10000 0.721

Through multiplying discount value with cash flow we get the discounted value of cash flows.

0 -12800 x 1.000 = -12800

1 10000 x 0.937 = 9370

2 10000 x 0.877 = 8770

3 10000 x 0.822 = 8220

4 10000 x 0.770 = 7700

5 10000 x 0.721 = 7210

Adding the discounted cash flows we get the value of Net present value and that is equal to $28756.79

6 0

3 years ago

Assume that a customer shops are a local grocery store spending an average of $400 a week, resulting in the retailer earning a $

balandron [24]

Answer:

a. The customer lifetime value=$10,956.77

b. The customer yields $1,560 per year in profits for this retailer

Explanation:

In order to calculate the customers life-time value, the net present flow is determined from all the future profit cash flows profits. This can be expressed as;

NPV= R/(1+r)^t

where;

NPV=net present value

R=net cash flow during a certain period

r=annual interest rate

t=period

In our case;

NPV=unknown

R=profits per year=profit per week×number of weeks=$30×52=$1,560

r=7%=7/100=0.07

t=varies from 0 to 10 years

Consider the table below;

Year Future cash flows Net present value

1 1560 1560/{(1+0.07)^1}=1,457.94

2 1560 1560/{(1+0.07)^2}=1,362.56

3 1560 1560/{(1+0.07)^3}=1,273.42

4 1560 1560/{(1+0.07)^4}=1,190.12

5 1560 1560/{(1+0.07)^5}=1,112.26

6 1560 1560/{(1+0.07)^6}=1,039.49

7 1560 1560/{(1+0.07)^7}=971.49

8 1560 1560/{(1+0.07)^8}=907.93

9 1560 1560/{(1+0.07)^9}=848.54

10 1560 1560/{(1+0.07)^10}=793.02

Total NPV= 1,457.94+1,362.56+1,273.42+1,190.12+1,112.26+1,039.49+971.49+907.93+

848.54+793.02=$10,956.77

The customer lifetime value=$10,956.77

The Profit yields per year can be determined using the expression below;

P=p×n

where;

P=annual profits

p=profits per week

n=number of weeks in a year

In our case;

P=unknown

p=$30

n=52 weeks

replacing;

P=30×52=$1,560 per year

The customer yields $1,560 per year in profits for this retailer

4 0

3 years ago