Answer: 21.63%
Explanation:
The firm's cost of equity capital will be calculated thus:
Market value of assets = $50000
Debt = $12500
Cost of debt = 7%
Unlevered cost of equity = 18%
Then, we'll calculate equity which will be calculated as:
= Market value of assets - Debt
= $50000 - $12500
= $37500
Then, the cost of equity capital will be:
= Unlevered cost of equity + [(Debt/equity) x (Unlevered cost of equity - Cost of debt)]
= 18% + [($12500/$37500) x (18% - 7%)]
= 18% + [0.33 x 11%]
= 18% + 3.63%
= 21.63%
Answer: B. Offering promotions C. By advertising D. Cultivating brand loyalty
Explanation:
Answer: pricing strategy
Explanation:
Pricing strategy refers to method that companies or organizations use in order for them to price their products.
Germany not allowing Walmart to sell some items below cost simply shows an example of how a foreign government can constrain pricing strategy. The reasoning behind this by Germany is to help it's local industries and help prevent it from foreign competition which may end up limiting their growth.
<span>Original cost of the tractor = 85,000 Less
Accumulated depreciation = 60,000
Remaining book value of the tractor = 85,000 - 60,000
= 25,000.
Amount received from insurance company = 20,000
Therefore loss due to fire = 25,000 - 20,000
= 5,000
The company should recognize this amount as its own loss and debit the loss account. Corresponding credit should be given to tractor account so that tractor account will show zero balance.</span>
Answer:
point A was a point below the economy's Production-Possibility Frontier (PPF) or the economy's PPF could have shifted outward and point A was a point on the economy old PPF.
Explanation:
Production possibility frontier is a that describes a graphical or pictorial representation of several production possibilities of a given two commodities that can be produced when both rely on the same limited resources.
Hence, in this case, the above situation illustrates that point A was a point below the economy's Production-Possibility Frontier (PPF) or the economy's PPF could have shifted outward, and point A was a point on the economy old PPF.
