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BaLLatris [955]
3 years ago
13

Verano Inc. has two business divisions long dash a software product line and a waste water​ clean-up product line. The software

business has a cost of equity capital of 12​% and the waste water​ clean-up business has a cost of equity capital of 8 %. Verano has​ 50% of its revenue from software and the rest from the waste water business. Verano is considering a purchase of another company in the waste water business using equity financing. What is the appropriate cost of capital to evaluate the​ business?
Business
1 answer:
Soloha48 [4]3 years ago
8 0

Answer:

appropriate cost of capital to evaluate the​ business is 8%

Explanation:

given data

cost of equity capital = 12​%

revenue from software = 50%

cost of equity capital = 8 %

to find out

the appropriate cost of capital

solution

we know that

Cost of capital = cost of capital in same industry or cost of capital in the related division

so here cost of capital equal to business is 8% so that Cost of capital will be 8%

hence  the appropriate cost of capital to evaluate the​ business is 8%

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harkovskaia [24]

Answer:

Each firm produces a quantity of 50 in long run equilibrium.

Explanation:

If a perfectly competitive industry of many identical firms has a long-run average total cost of LATC = 800 – 10Q + 0.1Q² and long-run marginal cost of LMC = 800 – 20Q + 0.3Q², for long run equilibrium to occur, LATC must be equal to LMC i.e LATC = LMC.

Equating both cost equation to get quantity Q each firm produces gives;

800 – 10Q + 0.1Q² = 800 – 20Q + 0.3Q²

Bringing all the terms to one side of the equation, we will have;

800-800-10Q+20Q+0.10Q²-0.3Q² = 0

10Q-0.2Q² = 0

Factorizing out Q, the equation becomes;

Q(10-0.2Q) = 0

From the resulting equation;

10-0.2Q = 0

10 = 0.2Q

Q= 10/0.2

Q = 50

This shows that each firm produces a quantity of 50 in long run equilibrium.

7 0
3 years ago
Which sentence is an oxymoron?​
olasank [31]

Answer:

You didn't attach any sentences, so I'm assuming that you want a definition. According to literarydevices.net, "Oxymoron is a figure of speech in which two opposite ideas are joined to create an effect....such as 'cruel kindness,' or 'living death'." I hope this helps.

7 0
4 years ago
Read 2 more answers
Halverstein Company's outstanding stock consists of 7,000 shares of cumulative 5% preferred stock with a $10 par value and 3,000
Alisiya [41]

Answer:

$3,500 preferred; $2,500 common.

$3,000 preferred; $3,000 common.

$0 preferred; $6,000 common.

$4,200 preferred; $1,800 common.

$6,000 preferred; $0 common.

4 0
3 years ago
Suppose a local bank increases the fees they charge for their bank accounts by 5 percent. in​ response, the demand for their ban
sammy [17]

Answer:

-0.34

Explanation:

Given that,

Percentage increase in prices = 5%

Initial quantity demanded = 30,000

New quantity demanded = 2,500

By midpoint method,

Average quantity :

= (Initial quantity  + New quantity) ÷ 2

= (30,000 + 2,500) ÷ 2

= 16,250

Change in quantity = (2,500 - 30,000)

                                = -27,500

Therefore, the price elasticity of demand is as follows:

= (Change in demand ÷ Average quantity demanded) ÷ Percentage increase in prices

= (-27,500 ÷ 16,250) ÷ 5

= -1.69 ÷ 5

= -0.34

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4 years ago
hyperlink is a feature that A. calculates data in the cell B. connect text in a document to an outside source. C. saves a worksh
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B connects text in a document to an outside source.

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