Answer:
The company's cost of capital is 8%
Explanation:
With the given information, we can calculate company's cost of equity by Capital Asset Pricing Model (CAPM) = risk free rate of return + beta * (market rate of return – risk free rate of return), in which risk free rate of return is Treasur bill rate which is backed up by government then free risk
Cost of equity (CAPM) = 5% + 1.25*(8%-5%) = 8.75%
Cost of debt = interest rate of debt * (1 – tax rate) = 5%*(1-0) = 5%
Cost of capital = cost of debt * its portion in total debt & equity + cost of equital * its portion in total debt & equity
= 5%*($5 million/ $25 million)+ 8.75% * ($20 million/ $25 million) = 8%
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. The first factor of production is land, but this includes any natural resource used to produce goods and services
Answer: lower cost
Explanation:
An insurance policy is a contract between an insurance company and a policyholder, which helps the policyholder to be able to make claims when there's an accident or death in case of life insurance.
In the above scenario in the question, if a driver with an insurance policy drives infrequently, it can lower costs.
Therefore, the correct option is B.
demand deposits - a deposit of money that can be withdrawn without prior notice
near money - assets that can readily be converted into cash, such as government bonds
just google the definitions and read about it
Answer:
B) efficiency versus autonomy
Explanation:
The three parties that make up the service encounter triad are: the organization that provides the service, contact personnel (which are part of the organization) and the customers. For example, in a service encounter that tales place in a movie theater; a contact person (e.g. sales clerk) provides a service (e.g. movie ticket) to a customer.
A lot of physical vendors or clerks are being replaced by automated customer service machines that are cheaper for the company but have limited autonomy. For example, in movie theaters you can get your tickets from a machine, so unless you also buy a soda or candy, you don't need to interact with the sales clerk.
