Answer:
The correct answer is: True.
Explanation:
The basic or fundamental problem in economics is people have unlimited wants and needs and the resources are limited. These limited resources have alternative uses and are used to satisfy unlimited wants and needs.
These resources are to be used rationally in such a way that total utility or consumption derived is maximized.
Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.
An interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that is interest rates subject to Variable interest rate regular changes is known as a variable interest rate (also known as an "adjustable" or "floating" rate).
A variable interest rate has the obvious advantage that if the underlying rate or index decreases, so do the borrower's interest payments. On the interest rates other hand, if the underlying index increases, interest payments rise. Fixed interest rates are stable, as opposed to variable interest rates.
Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.
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Answer:
b. $10 per hour.
Explanation:
Joab wants to travel to Tacoma, Washington to climb Mt. Rainier and is trying to decide if he should drive or fly to the location. The flight to Washington would cost $500 and take 7 hours. Also if he flies, he would need to rent a car at an additional total cost of $300 (including gas) and drive an additional 3 hours total between the airport and the mountain. If Joab were to drive his Honda Civic from Tallahassee out to Mt. Rainier, the trip would take 50 hours and cost him $400. Other things constant, Joab would choose the flight plus rental car option if and only if the value of his time is at least $10 per hour.
Answer:
C) sales promotion.
Explanation:
Sales promotions are the activities that a business conducts to persuade a customer to buy. There are marketing pull strategies aimed at stimulating sales. Sales promotions also mean extra incentives given to salespeople and retailers to increase sales.
Sales promotion are short term measures used to boost sales or introduce a product to the market. Arizona cookies expect the customers will enjoy the free cookies and use the free coupons to buy more. By giving the free samples, Arizona is introducing its products to new customers with the anticipation of growing its sales. Other methods of sales promotions include competitions and loyalty points.
Answer:
Plan A = 8.55%
Plan A =8.57%
Plan A =7.9%
Plan A =6.58%
Explanation:
The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows
WACC = Cost of capital x Weights
PLAN A
Weights Cost of capital WACC
Debt 3.0 % 15 % 0.45%
Preferred stock 6.0 10% 0.6%
Common equity 10.0 75% 7.5%
WACC 8.55%
PLAN B
Weights Cost of capital WACC
Debt 3.2 % 25% 0.8%
Preferred stock 6.2 10% 0.62%
Common equity 11.0 65% 7.15%
WACC 8.57%
PLAN C
Weights Cost of capital WACC
Debt 4.0 % 35 % 1.4%
Preferred stock 6.7 10% 0.67%
Common equity 10.6 55% 5.83%
WACC 7.90%
PLAN D
Weights Cost of capital WACC
Debt 7.0 % 45 % 3.15%
Preferred stock 7.6 10% 0.76%
Common equity 12.6 45% 5.67%
WACC 6.58%
