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atroni [7]
2 years ago
5

Diminishing marginal utility of wealth implies that the utility function. Group of answer choices

Business
1 answer:
yan [13]2 years ago
7 0

Answer:

c. has decreasing slope and a person is risk averse.

Explanation:

The marignal utility of wealth represent that the subsequent utility of the person wealth is not perceived as necessary/joyful as the previous one.

This makes the slope of the utility function to go upward but at slower grow.

The first units of wealth produce a great improvement in utlity compared with the followings just like in any other good or service provided in the economy.

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Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in
il63 [147K]

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.

4 0
2 years ago
One of the questions on a survey of 1,000 adults asked if today's children will be better off than their parents. Representative
Oxana [17]

Answer:

Explanation:

Dnt understand

6 0
2 years ago
The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estim
Artyom0805 [142]

Answer:

the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:

cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%

I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.

<em>The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%</em>

<em>Another question: </em>

<em>The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%</em>

5 0
3 years ago
A taxpayer, age 64, purchases an annuity from an insurance company for $62,000. She is to receive $517 per month for life. Her l
Ber [7]

Answer:

$3,220.90

Explanation:

Expected Return = $517 * 12 months * 20.8 years

Expected Return = $129,043.20

Exclusion Percentage = $62,000/ $129,043.20

Exclusion Percentage = 0.4804593

Exclusion Percentage = 48.05%

Exclusion amount = $6,200 * 48.05%

Exclusion amount = $2,979.1

Amount included in Income = $6,200 - $2,979.1

Amount included in Income = $3,220.90

5 0
2 years ago
Diversification is important in investing because…
Airida [17]
Well I look up the answer it c.
6 0
3 years ago
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