Answer:
Substitutes
Explanation:
The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.
Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.
Answer:
$3 per glass
Explanation:
THe consumer are paying (9-6) per glass, so $3 higher.
Most other data in the question seems irrelevant.
Answer:
Interest revenue for the year 2019 = $688
Explanation:
Total cost of asset = $25,000
Interest Revenue to be earned = 11% for 12 months
Total interest revenue = $25,000 X 11% = $2750
In the year 2011 the asset is sold on 1 October therefore interest revenue for the year 2011 will be from 1 October to 31 December = 3 months = $2,750 X = $687.50
Interest revenue for the year 2019 = $688
Answer:
Project's WACC = 12.95%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm may contain one or all of the following components - debt, preferred stock, common stock. For a firm with two components in capital structure in form of debt and equity, the WACC is calculated as follows,
WACC = wD * rD * (1+tax rate) + wE* rE
Where,
- wD and wE are the weights of debt and equity in the total capital structure
- rD and rE are the cost of each component
- We multiply the cost of debt by 1 - tax rate to calculate the after tax cost of debt
We must first determine the weight of debt and equity in total capital structure.
A debt to equity ratio of 0.64 means 0.64 debt for every 1 dollar of equity. The total assets are made up of debt + equity. So, total assets are 0.64 + 1 = 1.64
Weight of debt = 0.64 / 1.64 = 16/41
Weight of equity = 1 / 1.64 = 25/41
WACC = 16/41 * 0.053 + 25/41 * 0.149
WACC = 0.1115 or 11.15%
The projects cost of capital is 1.8% more than the company's WACC.
So, the project's cost of capital is,
Project's WACC = 11.15% + 1.8%
Project's WACC = 12.95%
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You can understand exactly where your money is going and identify ways to be more efficient with careful planning and maintaining an eye on your finances. Having a system that you can use and that shows information in a way you can easily comprehend is crucial. The majority of the money you make as a child care provider comes from the parents of the children who are enrolled in your program.
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