A curve that is derived by summing horizontally individual demand curves is called <u>market demand curve</u>.
The quantity acquired by all buyers and sellers total of the individual demands—gives "the market demand for each price". Because the sum is calculated over the quantities for each price, this is commonly referred to as a "horizontal sum". The horizontal (quantity) sum of each individual supply curve represents the market supply.
The market demand curve is just the horizontal addition of each consumer's particular demand curves for lattes. When you sum horizontally, you are totaling amount demanded rather than price. You must multiply the quantity by the total market demand at each price point.
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That's not a question, but the proper answer should be a loan.
Answer:
working capital also called net working capital (NWC)
Answer:
a. real interest rate is 0.217 or 21.7%.
b. saving = 134
, investment is 332
, consumption is 3666.
Explanation:
a) Y = Cd + Id + Gd
Where Y= output
Cd= consumption
Id= Investment purchases
Gd=Government purchases
Y= (3600 - 2000r + 0.10Y) + (1200 - 4000r) + 1000
Y=5800-6000r+0.10Y
0.9Y=5800-6000r
At full employment Y=5000
Putting the value of Y in the above equation
0.9*5000=5800-6000r
5800-4500=6000r
r=0.217
Therefore real interest rate is 0.217 or 21.7%.
(b) Sd = Y - Cd - G
where Sd is national saving
Sd = Y - (3600 - 2000r + 0.1Y) - 1200
Sd = 5000-(3600 - 2000*0.217 + 0.1*5000) - 1200 =5000-3600+434-500-1200 = 134
Therefore, saving = 134
Id= 1200-4000*0.217 =332
Therefore, investment is 332
Cd= 3600-2000r+0.10Y=3600-434+500=3666
Therefore, consumption is 3666.
Answer:
the company's WACC is 16.88%
Explanation:
<u>Cost of Common Stock is Calculated as follows :</u>
The available data allows us to use the (Capital Asset Pricing Model ) CAPM to calculate the cost of equity.
Cost of Common Stock = Risk free rate + Company`s Beta × Risk Premium
= 5.9 % + 1.12× 10 %
= 17.10%
<u>Cost of Bonds is Calculated as follows :</u>
Cost of Debt = Interest × (1- tax rate)
= 7.90% × ( 1- 0.30)
= 5.53%
<em>Capital Source Market Value Weight Cost Total</em>
Common Stock $35,190,000 98.05% 17.10% 16.77%
Bonds $699,840 1.95% 5.53% 0.11%
Total $35,889,840 100.00% 16.88%