Answer:
The pp's new value of operations would be $487,805. The right answer is e
Explanation:
According to the given data we have the following:
ke=12%
kd=8%
wd=30%
we=70%
To calculate the pp's new value of operations we would have to calculate the WACC as follows:
WACC=we*ke+wd*kd*(1-t)
WACC=70%*12%+30%*8%*(1-0.4)
WACC=9.84%
Therefore, pp's new value of operations=EBIT(1-t)/WACC
=$80,000(1-0.4)/9.84%
=$487,805
The pp's new value of operations would be $487,805
Answer: Two-day option at $301.10
Explanation:
Total cost = Cost of Shipment + (H * shipment time)/365
H = Annual earning potential = 125 units * (200 * 30%)
= $7,500
Overnight shipping:
= 300 + 7,500 * 1/365
= $320.55
Two-day
= 260 + 7,500 * 2/365
= $301.10
Six-day
= 180 + 7,500 * 6/365
= $303.29
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<em>The Two-day option would be most economical. </em>
Melanie's economic profit per month is computed as follows: $10,000 (revenue monthly) - $500 (supplies monthly) - $50 (monthly depreciation = $600 annually / 12 months in a year) = $9,450.
Answer: d. Decision-making lag
Explanation:
When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.
For instance, the economists suggesting dropping the federal funds rate by 0.25% might have the backing of one half of the Fed and the other Economists, the other half. Arguments could therefore go on for weeks before a decision is made.
