Answer:
In simple words, it is hard for governments to break he monopolies as generally as these entities are generally protected by some kind of legal or social convention. A monopoly of an entity that has strategic importance for the nation could be harmful in long run. Also if an individual owns a monopoly due to some patent right etc. then breaking that up will be seen as social injustice.
Answer: C $116,500
Explanation:Northwest ending inventory is calculated thus:
Opening Inventory $94,000
Purchases $400,000
Freight Charges $7,500
Good Returned ($5,000)
Goods Sold ($380,000)
Closing Inventory $116,500
Answer:
10.34%
Explanation:
Calculation to determine what will Nantucket's new WACC be
New Firm Value= $640,000 + (.34) ($300,000)
New Firm Value= $742,000
Capital Structure = $300,000 + $442,000
($742,000-$300,000=$442,000)
rs = .12 + (300/442) * (.12 - .08) * (1 - .34)
rs= .12 + .0179
rs = .1379*100
rs = 13.79%
Now let calculate the New WACC
New WACC = (300/742) * (.08) * (1 - .34) + (442/742) * (.1379)
New WACC= .0213 + .0821
New WACC= .1034*100
New WACC= 10.34%
Therefore what will Nantucket's new WACC be is 10.34%
Answer:
also cut its prices.
Explanation:
the kinked demand theory is based on the premise that prices in oligopoly or duopoly markets tend to be very rigid and the participating industries are not very responsive to price changes. I.e. competitors will tend to respond more to a price decrease than to a price increase. In this case, Kittysitters will only change their prices if Kit-N-Sit decreases them. Instead, if Kit-N-Sit increased their prices, Kittysitters would do nothing.