When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should increase the initial project cost by dividing that cost by (1-0.068). The flotation cost is the cost which emerge when a corporation gather its fund by issuing new securities. Underwriting fees, legal fees, registration fees are the common fees that will increase corporate's expense when they issue securities. Therefore, we can consider those fees as a flotation cost.
Answer:
(a) Assumption
(b) Cause and Effect
(c) Cause and effect
(d) Assumption
Explanation:
(a) People behave rationally: Assumption
Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.
(b) Cause and Effect
If a price of goods falls that is a cause and the effect is that people will consume more of the good.
(c) Cause and effect
As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.
(d) Assumption
The maximization of profit is based on the assumption of theory of production and costs.
Answer:
Consultation.
Explanation:
In the scenario observed in the question, it can be seen that the dean used the consultation tactic.
This tactic can be defined as the influencing leader seeking support from others to influence a group. This is an effective approach to increase group satisfaction due to the value of democratic decision-making.
The benefits of this technique are described in the question, such as the increased commitment of the faculty, who are now interested in seeing the process succeed and the objective of accreditation fulfilled.
Answer:
The price of baseball bats (a complementary good) increased
If the price of a complementary good increases, this would result in a decrease in demand for baseballs.
Explanation:
Answer:
The gross profit margin of Candy Company is 65% (second option)
Explanation:
The gross profit margin is defined as:
Mg = (sales - costs) / price of sales
If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:
Mg = ($320,000- $112,000) * 100% / $320,000 =
Mg = $208,000 * 100% / $320,000 = 0.65 * 100%
Mg = 0.65 * 100%
Mg = 65%
