Answer: To increase sale by 10%, the seller must lower the price of the good by 12.5%.
Explanation: Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price. Since, demand and price for a normal good are negatively related to each other, price elasticity is also negative. It can be calculated using,
Therefore, to increase sale by 10%, the seller must lower the price of the good by 12.5%.
Answer:
The. Trader should buy the out option
Explanation:
See attached file
Answer:
In the course of typing the e-mail message,Helene is engaged in message encoding(B).
However, while hitting the send icon,Helene is engaged in message transmission(A).
Explanation:
Message encoding is actual formulation of the message and the sender must bear in mind that the essence of communication is comprehensibility,as a result choose tone and words that are appropriate in a given circumstance.
On other hand,message transmission involves the sending of the message crafted earlier in the course of message encoding to the recipient .
Answer:
a.To implement the corporate valuation model, we discount projected free cash flows at the weighted average cost of capital.
Explanation:
Common sense requires that like should be compared like, the free cash flows are meant for all providers of finance, debt, and equity stockholders alike, hence, in discounting the free cash flows to firm, the discount rate is the one that captures the overall cost of finance to the firm which is the weighted average cost of capital, hence, option "a" is correct.
Net income and NOPAT cannot be discounted since they are not cash flows
In the same vein,the free cash flows which are meant for debtholders and stockholders cannot be discounted at the cost of equity which is only an equity required rate of return
The answer to this question is Industry analysis
Industry analysis refers to the anlysis that being done by a certain company in order to understand the position of that company in the market compared to other competitors. The result of this analysis will be used to formulate a plan that will be used by the company in the future in order to beat the competitors.
