Answer:
It is an example of the shoes leather costs.
Explanation:
Shoe leather cost is the cost which involve the time as well as the efforts which people spend on trying to counter-act the inflation effects like holding less amount of cash and make additional trips to the bank.
In this scenario, Alyssa in order to protect herself from the effect of the inflation, she sends employee to bank for depositing the money into the bank four times a day. Therefore, it is an example of Shoe leather cost
Answer:
Meatball prices will exceed marginal cost.
Explanation:
Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.
The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.
Answer:
WACC = 11.6%
Explanation:
<em>The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund. </em>
To calculate the weighted average cost of capital, follow the steps below:
<em>Step 1: Calculate cost of individual source of finance </em>
Cost of Equity= 13.5%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7%× (1-0.4)= 4.2%
<em>Step 2 : calculate the proportion or weight of the individual source of finance . (This already given) </em>
Equity = 80%
Debt= 20%
<em>Step 3:Work out weighted average cost of capital (WACC) </em>
WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%
WACC = 11.6%
Answer: Negligence of duties
Explanation:
As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.
Answer:
Conduct market research
Market research will tell you if there’s an opportunity to turn your idea into a successful business. It’s a way to gather information about potential customers and businesses already operating in your area. Use that information to find a competitive advantage for your business.
Explanation:
