Answer:
The CPI for the given year is 123.
Explanation:
Consumer price index (CPI)
In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.
Cost at base year =$[(4×2)+(2×9)]
=$26
In a given year, bread cost $3 per loaf and wine cost $10 per bottle.
Cost at given year =$[(4×3)+(2×10)]
=$32
The CPI for the given year is
≈123
The product of 28 and 97 is 2716
Answer:
how to allocate resources among his four stores.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
In this scenario, George owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining how to allocate resources among his four stores.
Answer:
14.27%
Explanation:
Unlevered value = [Expected earnings before interest and taxes × (1- tax rate)]/Unlevered cost of capital
Unlevered value = [$87,200 x (1- 0.35)]/0.12 = $472,333.33
Levered value = Unlevered value + (Tax rate × Debt market value)
Levered value = $472,333.33 + (0.35 x $227,000) = $551,783.33
Value of equity = Levered value - Debt market value
Value of equity = $551,783.33 - $227,000 = $324,783.33
Cost of equity = Unlevered cost of capital + [(unlevered cost of capital - coupon rate) × (Debt market value/Value of equity) × (1 - Tax rate)]
Cost of equity = 0.12 + [(0.12 - 0.07) × ($227,000/$324,783.33) × (1 - 0.35)] = 0.1427, or 14.27%
Therefore, the firm's cost of equity is 14.27%
