Answer:
c.About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
Explanation:
In a long run, The demand is more elastic than in a short run, this is because the consumers have both more time and number of substitutes to switch to. So almost 50% of long-run decrease in quantity demanded is due to less driving by people, while rest 50% is due to people switching to more fuel-efficient cars.
Answer:
A. 122 days
Explanation:
The computation of the cash conversion cycle is shown below:
= DAys sales outstanding + days inventory outstanding - days payable outstanding
where
Days sales outstanding is
= 365 ÷ $2.8 ÷ $0.6
= 78.16 days
The days inventory oustandings is
= 365 ÷ $2.3 ÷ $0.5
= 79.35 days
And, the days payable outstanding is
= 365 ÷ $2.1 ÷ $0.2
= 34.76 days
Now the cash conversion cycle is
= 78.16 days + 79.35 days - 34.76 days
= 122.75 days
= 122 days
Answer:
13.86%
Explanation:
WACC = cost of equity x percentage of equity + (cost of debt x percentage of debt x ( 1 - tax rate))
0.65 x e + (9 x 0.6 x 0.35) = 10.90
cost of equity = 13.86%
Answer: 12.53%
Explanation:
EBIT = $780,000
Interest = $470,000
EBT = EBIT - Interest
= $780,000 - $470,000
= $310,000
Net Income = EBT - Tax
= $310,000 - (35% × $310,000)
= $310,000 - (0.35 × $310,000)
= $310,000 - $108,500
= $201,500
Total assets turnover ratio = 2.8
Total assets = $10,000,000/2.8
= 3,571,429
Debt ratio = 55% = 0.55
Debt/Total asset = 0.55
Debt/3,571,429 = 0.55
Debt = 0.55 × 3571429
= 1,964,286.4
Equity = 0.45 × 3571429
= $1607143.5
Return on equity = Net income/Equity
= $201,500/$1,607,143.5
= 0.1253
= 12.53%
The company's return on equity will be 12.53%.
Answer:
4%
Explanation:
physical capital per worker has grown by = physical labor growth rate - labor force growth rate = 5% - 1% = 4%
Physical capital refers to the amount of equipment and physical structures used to produce goods and services. The physical capital per worker is a ratio that divides total physical output by the total labor force. An increase in the physical capital per worker should result in an increase in labor productivity. E.g. A delivery service uses a bicycle and is able to deliver 10 packages every 4 hours, but if they start to use a delivery truck, the delivery service will be able deliver 20 packages every 4 hours.
