Answer:
$24.5
Explanation:
Calculation for What is the current stock price
Current stock price=$1.40 (1+.05) / (.11-.05)
Current stock price=$1.40 (1.05) / (.11-.05)
Current stock price=$1.47/0.06
Current stock price=$24.5
Therefore the current stock is $24.5
The correct answer is 2.4.
The simplest way to define elasticity of demand is by using the following formula:
Elasticity of Demand = Change in Demand / Change in Prices
Then, in our question we have:
Demand Elasticity = 12% / 5% = 2.4
Why is it called elasticity of demand?
An elastic product is one in which demand significantly shifts in reaction to price fluctuations. In other words, the product's demand point has expanded significantly from its earlier point. It is inelastic if the amount purchased fluctuates little when the price of the good or service changes.
What Does elasticity of demand tells us?
It reveals how much the quantity needed alters in response to pricing changes made by the company. The price elasticity of demand explains how the amount sought in the market changes when the price changes if we are evaluating a market demand curve.
Learn more about elasticity of demand: brainly.com/question/23301086
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Answer:
The correct option is (b)
Explanation:
Private carrier is an organization that transports only the products produced by firm that own it.
Such organization's primary business activity is not transporting products from one place to another. In other words, these carriers do not transport goods of other companies.
Companies find having their own carriers cost effective as compared to hiring one.
Therefore, private carrier is a trucking operation that transports goods for the firm that owns it.
Answer: 0.56
Explanation:
After tax cost of debt is:
= 6% * ( 1 - 20%)
= 4.8%
Assume that the weight for debt is "x" which would mean that the weight for Equity is "1 - x".
WACC = (Weight of equity * cost of equity) + (Weight of debt * After tax cost of debt)
0.12 = ( (1 - x) * 0.16) + 0.048x
0.12 = 0.16 - 0.16x + 0.048x
0.12 - 0.16 = - 0.112x
x = -0.04 / -0.112
x = 35.7%
Weight of equity = 1 - 35.7% = 64.3%
Debt to equity ratio:
= 35.7% / 64.3%
= 0.56
Answer:
$8,300
Explanation:
Calculation for what Elroy's incremental profit or loss would be if he chooses option 2 over option 1
Using this formula
Incremental Profit of option 2 over option 1= Profit from option 1 - Profit from option 2
Let plug in the formula
Incremental Profit of option 2 over option 1= ($3,600*3)-(3*$1,100 - $800)
Incremental Profit of option 2 over option 1= $10,800 - $2,500
Incremental Profit of option 2 over option 1= $8,300
Therefore Elroy's incremental profit or loss would be if he chooses option 2 over option 1 would be $8,300