Answer: Weighted Average Cost of Capital
Explanation:
The Weighted Average Cost of capital for a company refers to rate a company pays on the various capital methods it employs to fund its operations such as common and preferred stock as well as debt.
This rate is used to evaluate the attractiveness of economic ventures and projects because the company needs the rate of return on the project to be at least higher than the company WACC so that the company may be able to pay off its capital holders.
Answer:
$50
Explanation:
For computing the amount which is spent on consumption, first we have to determine the multiplier spending which is shown below:
Multiplier spending = (1) ÷ (1 - MPC)
= (1) ÷ ( 1 - 0.8)
= 1 ÷ 0.2
= 5
And, the government spending is $10
So, the consumption amount spent would be
= 5 ×$10
= $50
Answer: the correct answer is (A) If Stonebridge does not raise taxes on its residents to maintain its infrastructure, the city will become much less attractive to live in as that infrastructure decays.
Explanation:
Situation: When a city loses population due to migration, fewer residents remain to pay to maintain the city's infrastructure, so property taxes tend to rise. These property taxes drive even more residents away. The city of Stonebridge is starting to lose population, so Stonebridge should not raise property taxes.
Reasoning: What would weaken the idea that the city should refrain from raising property taxes? That the city would decay because it wouldn't have money to maintain the infrastructure so A is correct.
