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2 years ago

The average cost associated with each additional dollar of financing for investment projects is:_________

Business

1 answer:

Roman55 [17]2 years ago

7 0

Answer:

c) the marginal cost of capital

Explanation:

The cost which a company bears to add one dollar / unit of capital is called marginal cost. We know that the company raise funds through different sources which can be debt from banks and stocks (common and preferred). This process of raising capital involves a cost which is termed as marginal cost of capital or the cost required to raise an additional unit of capital.

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1 + 1 = ? First to answer gets brainliest XD

Igoryamba

2

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-Zayn Malik 1795

3 0

3 years ago

Read 2 more answers

Financial analysts said they were surprised that despite higher inflation and shrinking profits margins, investors continue pour

kicyunya [14]

Answer:

The correct answer is (E) continued to pour money into the stock market in the belief that the American economy was

Explanation:

Inflation can affect cash flows to a greater or lesser extent, depending on their nature. Thus inflation could affect sales prices more, or costs. The entrepreneur generally fights inflation trying to reduce costs and maintain competitive prices, but he can not against generalized inflation in the economy, and consequently his cash flows could be, in real terms, increasingly lower, by the loss of the power to buy money. In this way, inflation encourages investments with rapid recovery and that require less capital investment.

8 0

3 years ago

The Guitar Shoppe reports the following sales forecast: August, $150,000; September, $170,000. Cash sales are normally 30% of to

nadezda [96]

Answer:

Thus Calculation of September Cash Receipts is as follows:

September Sales ( $170,000 × 30%) = $51,000

August Sales ( $150,000 × 55%) = $82,500

Total = $133,500

Explanation:

September cash receipts will include the following :

30% of September Sales
55% of August Sales

Thus Calculation of September Cash Receipts is as follows:

September Sales ( $170,000 × 30%) = $51,000

August Sales ( $150,000 × 55%) = $82,500

Total = $133,500

5 0

3 years ago

To compete with Lexus, a successful luxury brand of Toyota, Nissan launches Infinity as its own luxury brand to seek the benefit

slava [35]

Answer:

(D). Straddling

Explanation:

Straddling positioning involves placing a product or brand in two segments at the same time such that it is possible to reap benefits from both segments.

By launching its luxury brand (Infinity), while remaining in other market segments, Nissan is practicing straddling positioning.

3 0

3 years ago

Suppose the price of gasoline in July 2004 averaged $1.35 a gallon and 15 million gallons a day were sold. In October 2004, the

Alenkinab [10]

Answer:

0.15

Inelastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

Midpoint change in quantity demanded = change in quantity demanded / average of both demands

change in quantity demanded = 14 million - 15 million = -1 million

average of both demands = (14 million + 15 million ) / 2 = 14.50 million

Midpoint change in quantity demanded = -1 million / 14.50 million = -0.069

midpoint change in price = change in price / average of both price

change in price = $2.15 - $1.35 = $0.80

average of both prices = ( $2.15 + $1.35 ) / 2 = $1.75

midpoint change in price = $0.80 / $1.75 = 0.457

-0.069 / 0.457 = 0.15 demand is inelastic

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

6 0

3 years ago