Answer:
The company's cost of capital will be "13%".
Explanation:
The given values are:
Risk free rate
= 5
Beta
= 1.25
Market risk premium
= 8
Now,
⇒
On substituting the estimated values, we get
⇒
⇒
The total value will be:
=
= $
As we know,
⇒
⇒
⇒
⇒
Note: % = percent
Answer:
None of the answers is correct:
- the CPI measures only a basket of goods and services, not all the goods and services
- the CPI measures around the whole country, not only in urban areas
- raw materials or wage rates have nothing to do with the CPI
Explanation:
The Consumer Price Index (CPI) measures the weighted average prices of a basket of goods and services (called the CPI basket). It is calculated by determining how much the nominal prices of the CPI basket changes from one year to another, or how the prices have changed using a base year and their current prices.
Answer:
product mix
Explanation:
Based on the information provided within the question it can be said that these assorted product lines might be described as Life is Good's product mix. In the context of marketing, this term refers to the total range of several related products that have been placed for sale individually by a company that is currently offering these products in the target market or industry that they are in.
The demand would go up because it would be more affordable
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