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ycow [4]
3 years ago
13

Cho has opened a new startup company in web design. within the first month of business, the startup agrees to maintain an accoun

ting firm’s website in exchange for someone doing their tax returns.
Business
1 answer:
mixer [17]3 years ago
7 0

The question is not complete, last part of the question is missing which I write below;


Which of the following principles of economic interaction best describes this scenario?


And the answer is "trade can make everyone better off ".


Trade can make everyone better off in light of the fact that it enables nations or companies to work in what they excel at and to appreciate a more extensive assortment of products and ventures.

The three principles concerning economic interactions are:

(1) Trade can make everyone better off;

(2) Markets are generally a better way to arrange economic activity

(3) Governments can at times develop market outcomes.


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You are given the following information for Watson Power Co. Assume the company’s tax rate is 23 percent. Debt: 8,000 5.7 percen
____ [38]

Answer:

the company's WACC is 10.04%

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that a project must offer before it can be accepted. It shows the risk of the company.

<em>Capital Source           Market Value        Weight           Cost Total     Weight</em>  

Debt                            $8,400,000            27.71%             4.389 %      1.22%

Common stock           $24,190,000           71.17%              12.2%         8.68%

Preferred stock           $1,400,000              4.12%               3.5%         0.14%

Total                          $ 33,990,000          100.00%                            10.04%

<u><em>Calculation of Market Value and Cost of Debt</em></u>

Market Value = 8,000×($1,000×105%) = $8,400,000

Cost of Debt = interest × (1 - tax rate)

                      = 5.7% × ( 1-0.23)

                      =  4.389 %

<u><em>Calculation of Market Value and Cost of </em></u><u>Common stock</u>

Market Value = 410,000× $59 = $24,190,000

Cost of Common stock = Risk free Rate + Beta × Market Premium

                                       = 4.5% + 1.10× 7%

                                       = 12.2%

<u><em>Calculation of Market Value and Cost of </em></u><u>Common stock</u>

Market Value = 17,500× $80 = $1,400,000

Cost of Preferred stock = 3.5%

7 0
3 years ago
In a 100-percent reserve banking system, if people decided to decrease the amount of currency they held by increasing the amount
MariettaO [177]

Answer:

a M1 would not change.

Explanation:

the checkable deposits are part of M1 as well as the currency and coins. Therefore, a component of M1 decrease (currency) while another of M1 (checkable deposits) increase.

As the banking system works with a 100-percent required reserve there is no multiplier effect from the deposit therefore M1 do not change.

8 0
4 years ago
A reference group acts as a point of comparison and as a source of information for an individual.
Eva8 [605]

Answer:

True

Explanation:

A reference group is that group in which the comparison is made between the individual person or the group as the case may be.

In this group, the evaluation of individual taken place with respect to nature, behaviors, and characteristics so that they can know about them i.e performance, aims, etc

Thus, it is a mix of comparison, evaluation, and personal attributes

7 0
3 years ago
A competitive firm maximizes profit by choosing the quantity at which.
photoshop1234 [79]

Profit maximization can be achieved by a competitive corporation by choosing a quantity of output such that marginal revenue equals marginal cost.

<h3>How does a corporation maximize its profit?</h3>

A corporation maximizes income via way of means of operating wherein marginal revenue equals marginal price. The corporation chooses quantity in order for that rate to equal marginal value so that it can maximize its profit.

Therefore, When the marginal revenue for an aggressive corporation equals the market rate, the firm maximizes its profit.

learn more about profit maximization here:

brainly.com/question/4171648

#SPJ1

7 0
2 years ago
Beachside co. sells two products, skis and snorkels. last year beachside sold 12,600 units of skis and 23,400 units of snorkels.
Nimfa-mama [501]

Total No of Units=12600+23400

=36000 units

Ski=12600/36000=35%

Snorkel=23400/36000=65%

7 0
3 years ago
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