Answer:
True
Explanation:
Net Worth = Total Assets - Total Liabilities
When it is positive and the company wants that all financial ratios shall remain constant, that is no change then when there is increase in sales then there will be increase in profits.
Accordingly, in case of operating at full capacity the company shall also increase external financing. As with increase in sales debtors or cash will increase, but if the external finance is increased, net worth will remain same, but if it is not increased, net worth will increase.
Let
z----------------- > Price Elasticity
x----------------- > % Change in Quantity
y----------------- > % Change in Price
we Know that
Price Elasticity = (% Change in Quantity) / (% Change in Price)----> z=x/y
z=-2
y=-10%
x= <span>?
</span>z=x/y---------------- > x=z*y=(-2)*(-10)=20 %
% Change in Quantity=20%
Part A) how many pizzas will he sell if he cuts his price by 10%?
He will sell (500 +20 %)----------> 500*1.2=600 pizzas per week
the answer part A is 600 pizzas per week
Part B) <span>how will his revenue be affected?
<span>initial revenue per week
</span>500 pizzas*</span><span>$20 =$10000
final revenue per week
(500 pizzas+20%) *(</span>$20-10%)=600 pizzas*$18=$10800
$10800-$10000=$800
<span>
the answer part B is
His revenue </span><span>will increase $800 per week</span>
The federal government's aggressive policy of tax cuts the greatest impact in pulling the U.S. economy out of the Great Depression. Thus, option (b) is correct.
<h3>What is economy?</h3>
The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the significant part of the country. The primary sector of the economy is the industrial sector and agriculture sector.
According to the U.S. economy on the duration of the Great Depression. There were the federal government are the easy money policies are the imposed on the policy of tax cuts. The main reason was the budget control.
Therefore, option (b) is correct.
Learn more about on economy, here:
brainly.com/question/2421251
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Answer:
The answer is 14.87%
Explanation:
Solution
Given that:
A large company stock had an average return of =12.59%
The average risk free rate = 2.58%
A small company stocks average is =17.45
The next step is to find the risk premium on small-company stocks for this period
Thus,
The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate
So,
Risk premium on small-company stocks = .1745 - 0.258
=0.1487
Therefore the risk premium on small company stocks for the period was 14.87%
