Answer:
it would be easier to form a cartel with few producers
Explanation:
since a cartel is a monopolistic type of org. few producer will earn and generate more profit
Answer:
B. Conflict between professionalism and commercialism
Explanation:
The conflict between professionalism and commercialism speaks to the debate on satisfying the management of an organisation as an auditor in order to meet economic situations and the need to be professionally independent of management in order to make a true and fair statement of the state of the organisation available to the shareholders as well as potential investors and the general public.
Because the management of an organisation runs the day to day affairs of that organisation, the Auditor in performing his duty interacts more with management and as such, the security of his future engagements may depend on favourable opinions of the management. This is commercialism
However, professionalism dictates that ethically, irrespective of the position of the management of an organisation, an auditor should always report the true and fair state of the business.
This represents the conflict expressed by Lynn Turner.
Answer:
.4
Inelastic
Explanation:
Elasticity of Demand = |%Change in Demand / %Change in Price|
%Change in Demand= |(40,000 - 50,000)/50,000| = 20%
%Change in Price = |(60 - 40)/40| = 50%
Elasticity of Demand = .2/.5 = .4 or 40%
.4 < 1 so Demand is Inelastic
Answer:
Risk-free rate = 3.5%
Market risk-premium = 6.9%
Cost of equity (Ke) = ?
Ke = Rf +β(Rm - Rf)
Ke = Rf + Market risk premium
Ke = 3.5 + 6.9
Ke = 10.4%
Cost of debt (Kd) = 5.4%
Market value of debt (D) = 12
Market value of equity (E) = 88
Market value of the company (V) = 100
WACC = Ke(E/) + Kd(D/V)(1-T)
WACC = 10.4(88/100) + 5.4(12/100)(1-0.40)
WACC = 9.152 + 0.3888
WACC = 9.54%
Explanation:
In this case, there is need to calculate cost of equity according to capital asset pricing model, which is risk-free rate plus market risk-premium.
Then, we will calculate the weighted average cost of capital, which equals cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by the proportion of debt in the capital structure. Since the proportion of debt in the capital structure is 12%(12/100), the proportion of equity will be 88%(88/100).
Answer:C
Explanation:
They have specific and concrete focus