Answer:
C. emphasize basic economic relationships by purposefully simplifying the complexities of the real world.
Explanation:
Answer:
The discount rate assign to a new project with a Beta of 1.25 is 13.94%
Explanation:
The applicable formula is the Capital Asset Pricing Model formula of Miller and Modgliani quoted below:
Ke = Rf + (Market risk premium x Beta)
Currently Ke=14.945%
Beta =1.38
Risk free rate of return (Rf) is 4.25%
Market risk premium is the unknown
14.945%=4.25%+(Market Risk Premium)*1.38
14.945%-4.25%=Market Risk Premium*1.38
10.70%
=Market Risk Premium*1.38
10.70%/1.38=Market Risk Premium
Market Risk Premium =7.75%
However, the new project cost of equity has to be determined due to having a different Beta factor of 1.25(a different risk appetite)
Using the above formula, we have
Ke=4.25%+(7.75%
*1.25)
Ke =13.94%
Answer:
b. $8.3 million
Explanation:
A 2013 court verdict then ordered DePuy to pay plaintiffs <u>$8.3 million</u> in damages.
A Los Angeles´s court have ordered Johnson & Johnson´s DePuy orthopedic department to pay more than $338000 for medical cost and $8 million for pain and suffering to plaintiff Loren Kransky. As the company has recalled artificial metal hips which was found defective but DePuy did not took any action against fraud or malice. No punitive damage will be paid to the victim.
The answer would be A. Shoes.
It is implied that a good has an inelastic supply if the supplier does not have a choice other than producing it despite the change in production cost. This would as well apply to the buyer, who needs the product no matter the pricing.No one can live without shoes, despite a spike in prices, we still need to buy them.
Answer:
The Interest Rate and how much you owe.
Explanation:
If you have a rate of 10% a month
and you owe $100, the next month you owe $110
or if you owe $50, then next month you owe $55
