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3 years ago

If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:

Business

1 answer:

OLEGan [10]3 years ago

8 0

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

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Borwan Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,

Gnoma [55]

Answer:

73,000 units

Explanation:

The computation of equivalent units for conversion costs is shown below:-

Equivalent units = Units transferred ÷ Finished goods + (Units in closing Work in progress × Percentage of completion)

= (8,000 + 69,000 - 5,000) + (5,000 × 20%)

= 72,000 + 1,000

= 73,000 units

Therefore for computing the Equivalent units we simply applied the above formula.

4 0

3 years ago

If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar

Contact [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0

2 years ago

Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 m

Lorico [155]

Answer:

$1.0725 Million

Explanation:

So now

Net Present Value = Annuity value of the even cash inflow - Investment

Here

Investment is $48 Million

Annuity Value of $13.5 Million Cash Inflow = $13.5 Million * Annuity factor for 5 years at 11.66%

Annuity factor = (1 - (1 + r)^ -n) / r

Here

r is 11.66% (Step1) and n is 5 years

Annuity Factor = (1 - (1 + 11.66%)^-5) / 11.66%

Annuity Factor = 3.635

By putting values in the above equation, we have:

Net Present Value = $13.5 Million * 3.635 - $48 Million

NPV = $1.0725 Million

Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital

= Value of Debt / (V of debt + V of equity) * After tax cost of debt PLUS

(Value of equity (Value of Debt / (V of debt + V of equity) * cost of equity

Here

Post tax cost of debt = Pre tax cost of debt * (1 + Tax rate)

Post tax cost of debt = 9% * (1- 30%) = 6.3%

The debt to equity ratio is 25% which means equity is 100% and debt is 25%.

Value of debt is 25%

value of equity is 100%

and total value of capital structure is 125%

This means

WACC = (25% / 125% * 6.3%) + (100% / 125% * 13%)

= 1.26% + 10.4% = 11.66%

3 0

2 years ago

Business applications have moved from transaction processing and monitoring to other activities. Which of the following is NOT o

AVprozaik [17]

Answer: <em>Option (C) is correct.</em>

Explanation:

In the 21st century, business applications have come a long way. It has moved from transaction processing and monitoring to problem analysis, solution applications and other activities. Data monitoring isn't one of these activities. Since data monitoring specifically concentrates on ardently analyzing and evaluating data and also it's quality in order to make sure that it lies within the domain of the purpose.

5 0

3 years ago

How do managers handle 2 challenges of each of the 8ms of management to effectively and efficiently steer their organization in

mezya [45]

Answer:

Explanation:

i think 16 im not sure though. hope i helped:)

6 0

3 years ago