Answer:
1.25
Explanation:
The Capital Asset Pricing model will be used
ße = ßa × [Ve + Vd(1 – T)] / Ve
Here
ße = 1.08
Ve = Value of equity $50 million
Vd = Value of debt $10 million
T is tax rate which is 21%.
By putting the values, we have:
ße = 1.08 × [50 + 10(1 – 21%)] / 50
ße = 1.25
The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.
Answer:
Option (B) is correct.
Explanation:
Given that,
Percentage increase in price = 5%
Percentage decrease in quantity demanded = 15%
Therefore,
= 3.0
Hence, elasticity of demand facing Billy Bob's Barber Shop is 3.0
Answer:
B. are also part of the value chain
Explanation:
Value chain comprises two activities i.e primary activities and support activities.
The primary activities include those activities which add the value to the customer through inbound logistics, outbound logistics, operations, and marketing sales and services
Whereas the support activities are those activities who support the primary activities. It involves procurement, firm infrastructure, etc
Answer:
Subliminal stimuli
Explanation:
Subliminal stimuli is defined as a stimulus that is below the sensory capacity of an individual. It is below the threshold where the individual can perceive that there is a change in something. For example if a company is producing potato chips and they want to increase salt content.
The point at which the consumer starts to notice a change in salt content of the potatoe chips is above the subliminal stimuli.
Although subliminal stimuli is not readily perceived it can unconciously influence consumer behaviour.
Answer:
When PED is greater than one, demand is elastic. This can be interpreted as consumers being very sensitive to changes in price: a 1% increase in price will lead to a drop in quantity demanded of more than 1%. When PED is less than one, demand is inelastic.
so it is true
Explanation:
