Answer:
The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.
The correct answer is D
Explanation:
In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.
Answer:
The correct option is D: $8.60
Explanation:
Average fixed cost of Pretty Flowers = $5.40
Average variable costs of Pretty Flowers = $3.20
We are asked to calculate the Average total cost of Pretty Flowers at this current level
Hence:
Average total cost Pretty Flowers = Average fixed cost of Pretty Flowers + Average variable costs of Pretty Flowers
If we substitute the value of these variables in the equation, we get:
Average total cost Pretty Flowers = $5.40 + $3.20 = $8.60
Dropping prices
Increased advertising
Comparing yours to competitors
Answer:
Devil’s advocacy
Explanation:
Devil’s advocacy is a thorough analysis of a preferred alternative to check and test its strengths and weaknesses before being implemented with the purpose of identifying all the faults that might make the preferred alternative unacceptable.
This method helps in determining the dangers of any action taken by an individual or group of persons.
Answer: The correct answer is choice c.
Explanation: Asymmetric information is the term that is used to refer to a situation in which on part to an economic transaction has less information than the other party. This term is also known as information failure.
