Cost of equity is calculated as -
Cost of equity = Risk free return + Beta * (Market risk - Risk free return)
Given,
Risk free return = 5.3 %
Market risk = 12 %
Beta = 1.05
Cost of equity = 5.3 % + (1.05*(12-5.3%))
Cost of equity = 12.335 % or 12.24 %
As people have become more health-conscious and decided to eat food that is better for them the demand curve for oranges and apples has shifted to the right.
Answer:
Option A. $15,400
Explanation:
The net deduction allowed as an charitable contributions are as under:
$
1. ABC Cop. stock
Cost $6000
FMV <u>$22000</u> $16000
2. Personal Clothing Items
Cost $1000
FMV <u>$400 </u> <u> ($600) </u>
Net Deduction $15,400
The amount that qualifies as charitable contribution for the year is $15400.
Answer:
Constant Return to Scale
Explanation:
Based on the information given the numbers
suggest that between 100 and 110 units of output, the firm producing this output has CONSTANT RETURN TO SCALE.
Constant Return to Scale occurs in a situation where the proportional increase in all the inputs is as well equal to the proportional increase in output which means the returns to scale are constant , which is why RETURNS TO SCALE help to describe all what happens to long run returns when the scale of production increases.
Therefore Constant returns to scale often occur when the output increase in exactly the same way or the same proportion as the factors of production.
You mow your neighbor's yard and he pays you $25. Which function of money does this BEST represent?
Medium of exchange. The function of money, medium of exchange, is the exchange of money for a good or service. They are facilitating the transaction by paying the neighbor for the lawn cutting service.
