Lets talk about all the terms. First of all, zero-sum game theory and rational choice theory are mathematical theories that are used to analyze financial phenomena. The first one is against this view and the second one is a general framework that does not say what its stance is; it is certainly not the basic message of rational choice theory. The mercantilist theory is a theory that favors trade restrictions, so this is not the right choice. THe theory of absolute and comparative advantage are related; the first one says that only a country can make a product in a good way, while the second theory claims that eeach country should specialize in what it is best at producing. The comparative advantage theory makes the case that if there are many goods, one should not need to bother to produce those which he is bad at producing; he should produce a surplus of his specialty and then trade with others (and their specialty products). Thus, comparative advantage is the correct choice.
Answer:
B.
Explanation:
Credit card is one of the most common way of making payment while a customer purchases anything in the market. The credit card company charge an amount that is payable by the seller.Thus, it is an expense for the one selling the product.
Given:
Credit card fee: 2%
Sales = $2,700
Credit card charges can be calculated as:
Credit card charges = Sales*Credit card fee
Credit card charges = $2,700*2%
Credit card charges = $54
Now, credit card charge is an expense so it will be debited. The amount is yet to be received so accounts receivable will also be debited. The revenue has been earned so it will be credited.
Thus, the journal entry for the given transaction has been attached below:
Answer:
the equity beta of the firm is 1.134
Explanation:
The computation of the equity beta is shown below:
Equity beta is
= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]
= 0.9 × [1 + (1 - 0.35) × 0.4]
= 0 9 × 1.26
= 1.134
Hence, the equity beta of the firm is 1.134
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: Vertical integration
Explanation:
vertical integration is simply a situation whereby an organization's or company's supply chain is owned by that organization or company.
Therefore, being less dependent on suppliers and making profits on both parts and the final product are advantages of vertical integration.
Answer:
6.88%
Explanation:
cost of equity = (next period dividend / by price) + growth rate in dividends.
cost of debt = yield to maturity x (1 - tax rate)
WACC = weight of debt x cost of debt + weight of equity x cost of equity.
cost of equity = ($0.25 / $40) + 0.07
= 0.07625
cost of debt = 0.09 x (1 - 0.4)
=0.054
WACC = ($40Billion x 0.07625) / 60billion + ($20 billion x 0.054) / $60billion
= 0.05083 + 0.018
= 0.0688 or 6.88%
