Answer:
C.
Explanation:
Based on the study being described it is not a valid claim because the stronger athletes were likely to drink the new sports drink whereas the weaker athletes were likely to drink flavored water. The companies need to sample athletes that are able to consistently lift a maximum of the same amount of weight. Once they have these participants they can then start the experiment. That way they know that the athletes are all on par with each other and if one is able to lift more than the other because they drank the energy drink they can isolate the drink as a cause.
When he runs into a old dog who so happens to be a dog that guides blind people.
Answer:
Explanation:
First, find the YTM of the bond (rD), you can do this with a financial calculator using the following inputs;
Maturity of the bond : N = 20
Annual coupon payment; PMT = 8%*1000 = 80
Face value; FV = 1000
Price of the bond ; PV = -1,050
then CPT I/Y = 7.51% (this is the Pretax cost of debt; the rD)
Next, find the cost of equity (rE) using CAPM;
CAPM; r = risk free + beta (Market risk premium)
rE = 0.0450 + 1.20(0.0550)
rE = 0.0450 + 0.066
= 0.111 or 11.1%
Next, WACC formula = wE*rE + wD*rD(1-tax) whereby;
w = weight of..
rD= pretax cost of debt
WACC = (0.65*0.111) + [0.35*0.0751(1-0.40) ]
WACC = 0.07215 + 0.015771
= 0.0879
Therefore, WACC = 8.79%
Answer:
Letter c is correct. <em><u>Higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive.</u></em>
Explanation:
An oligopoly is a market situation that occurs when there are a small number of companies that dominate the supply of a particular product or service in a sector of the economy. It can occur naturally or structurally, and the purpose of this market configuration is to have greater competition and price control, so that there is greater profitability.
This scenario is characterized by imperfect competition, which is similar to the monopoly market, but in oligopoly production is higher than in monopoly, because there is more than one supplier of the same product. And production in an oligopoly is lower than in a perfectly competitive scenario where there are many suppliers and none have the ability to affect market price.
Answer:
False
Explanation:
Arbitrage refers to buying and selling stocks, commodities, bonds, currencies, or any other type of security. This process is carried out simultaneously, and a profit is made when the purchase price is lower than the selling price. E.g. a trader that purchases gold from a European seller and immediately sells it to an Asian buyer at a slightly higher price.
As technology advances, arbitrage has become more difficult to carry out because information is available to everyone. Before, a company could purchase a good (e.g. beef) in Texas and sell it at a higher price to a buyer in New York.
