Answer:
230
Explanation:
Good A has an income elasticity of -1.5. The goods is an inferior good since it has a negative income elasticity. An increase in income reduces its demand, but a decline in income increases its demand.
Fraol’s income has decreased. He will demand more of good A.
the formula for calculating income elasticity is as follows
Income elasticity of a good = % Change in demand/ % change in income.
i.e - 1.5 = % Change in demand/ % change in income.
% change in income =( 40,000 -36,000)/40,000 x 100
=4,000/40,000 x 100
=10%
-1.5 = %CD/10
%CD= 10 x -1.5
%change in demand = 15%
the new demand will be( 15% x 200 ) + 200
=(15/100 x 200 )+200
=(0.15x200) +200
=30 +200
=230
Answer:
completed units = 9,500 gallons
Explanation:
gallons completed = beginning WIP inventory + units started during the month - ending WIP inventory = 1,000 gallons + 10,000 gallons - 1,500 = 9,500 gallons finished
units started and completed = total units started -ending WIP = 10,000 gallons - 1,500 gallons = 8,500 gallons
Answer:
Option (B) is correct.
Explanation:
WACC = (We × ke) + [Wd × kd × (1 - t)]
where,
We = Equity
Wd = Debt
ke = cost of equity
kd = cost of debt
t = tax rate
At 50% equity and 50% debt,
WACC = (50% × 6%) + [50% × 8% × (1 - 0.4)]
= 5.40%
At 75% equity and 25% debt,
WACC = (75% × 6%) + [25% × 8% × (1 - 0.4)]
= 5.70%
Therefore, there is an increase in the XYZ's WACC if its capital structure were to shift to 75% equity and 25% debt.
Answer:
This means that Nepal, as a very underdeveloped country, lacks the necessary amount of domestic capital to build a healthy and functional economy, and for this reason, it requires international help in the form of foreign direct investment that can supply more capital to the country, capital that is used to set up new companies and investment projects that employ more Nepalese people.