Answer:
WACC 13.85600%
Explanation:
First we calculate Eastern Pizza CAPM:
risk free = 0.08
market rate = 0.12
premium market = (market rate - risk free) 0.04
beta(non diversifiable risk) = 2
Ke 0.16000
Then we solve for WACC
Ke 0.16000
Equity weight 0.8
Kd 0.08
Debt Weight 0.2
t 0.34
WACC 13.85600%
The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.
Answer:
Price elasticity of demand = 2.6
Explanation:
Given:
Old price (P0) = $70
New price (P1) = $60
Old sales (Q0) = 10,000 units
New sales (Q1) = 15,000 units
Computation of Price elasticity of demand(e):
Midpoint method
![e=\frac{\frac{Q1-Q0}{\frac{Q1+Q0}{2} } }{\frac{P1-P0}{\frac{P1+P0}{2} } }](https://tex.z-dn.net/?f=e%3D%5Cfrac%7B%5Cfrac%7BQ1-Q0%7D%7B%5Cfrac%7BQ1%2BQ0%7D%7B2%7D%20%7D%20%7D%7B%5Cfrac%7BP1-P0%7D%7B%5Cfrac%7BP1%2BP0%7D%7B2%7D%20%7D%20%7D)
By putting the value:
![e=\frac{\frac{10,000-15,000}{\frac{10,000+15,000}{2} } }{\frac{60-70}{\frac{60+70}{2} } }\\e=\frac{\frac{-5,000}{\frac{25,000}{2} } }{\frac{-10}{\frac{130}{2} } }\\](https://tex.z-dn.net/?f=e%3D%5Cfrac%7B%5Cfrac%7B10%2C000-15%2C000%7D%7B%5Cfrac%7B10%2C000%2B15%2C000%7D%7B2%7D%20%7D%20%7D%7B%5Cfrac%7B60-70%7D%7B%5Cfrac%7B60%2B70%7D%7B2%7D%20%7D%20%7D%5C%5Ce%3D%5Cfrac%7B%5Cfrac%7B-5%2C000%7D%7B%5Cfrac%7B25%2C000%7D%7B2%7D%20%7D%20%7D%7B%5Cfrac%7B-10%7D%7B%5Cfrac%7B130%7D%7B2%7D%20%7D%20%7D%5C%5C)
![e=\frac{\frac{-5,000}{12,500} }{\frac{-10}{65} }](https://tex.z-dn.net/?f=e%3D%5Cfrac%7B%5Cfrac%7B-5%2C000%7D%7B12%2C500%7D%20%7D%7B%5Cfrac%7B-10%7D%7B65%7D%20%7D)
e = 2.6
Answer:
Interest payment on bonds payable is a cash outflow from financing activities.
Explanation:
The only statement which is false from the list is : Interest payment on bonds payable is a cash outflow from financing activities.
Interest payment on bonds payable is an expense in the income statement used to determine the income for the year. Net Income falls under the Cash flows from Operating Activities.
Answer:
$90
Explanation:
Nominal GDP is GDP calculated using current year prices.
Nominal GDP = current year prices x unit of output
18 x $5 = $90
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Answer:
Role-Based Access Control (RBAC)
Explanation:
Instead of assigning access for each user account individually, Role-Based Access Control (RBAC) is a more efficient and easier-to-manage approach.
In computer systems security, role-based access control or role-based security is an approach to restricting system access to authorized users. <u>It is used by the majority of enterprises with more than 500 employees,</u> and can implement mandatory access control or discretionary access control.
Hence, access need not be assigned for each user individually.