Answer:
If the workers had been paying other people to perform the household activities prior to unemployment, then total production will fall.
Explanation:
Answer:
The company's WACC is 9.14%
Explanation:
cost of preferred stock
= (dividend on preferred stock)/(current market price)
= [$100*4%]/$72
= 5.56%
total finance = debt + equity + preferred stock
= (8,000*$1,060) + (310,000*$57) + (15,000*$72)
= $8,480,000 + $17,670,000 + $1,080,000
= $27,230,000
weight of debt = debt/total finance
= $8,480,000/$27,230,000
= 0.31
weight on equity = equity/total finace
= $1.080.000/$27,230,000
= 0.04
WACC
= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)
= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)
= 9.14%
Therefore, The company's WACC is 9.14%
<u>Answer: </u>A is core competence
<u>Explanation:</u>
Core competence is the common term that is used by an organisation to define its multiple resources and skills that are not similar to any one else in the market. Core competence is also the strategic advantage that a business possess in the market.
The strength of the organisation helps it attract many customers and tap all the opportunities in the market at the right time to achieve success. The core competence of the organisation cannot be easily identified or imitated by the competitors in the market.
Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
