The Consumer Price Index (CPI)

Suppose that Edison, an economist from a university in Arizona, and Hilary, an economist from a school of industrial relations,

Ivahew [28]

Answer:

Tariffs and import quotas generally reduce economic welfare.

Explanation:

The vast majority of economists (over 90% according to the University of Chicago) agree that tariffs and import quotas generally reduce economic welfare. This is perhaps the normative statement in which economists agree the most.

The reason why is because tariffs and import quotas only benefit a small fraction of domestic producers, to the dismay of a larger number of consumers who end up having to pay higher prices for consumer goods.

6 0

3 years ago

Calculating the price elasticity of demand: A step-by-stepguideSuppose that during the past year, the price of a laptop computer

NARA [144]

Answer:

original quantity = 468,000

Average quantity = 382,000

new quantity = 296,000

a. -45.03%

original price - $2,950

new price = $3,110

Average price = 3030

3. -172,000

$160

b. 5.28%

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

Average quantity = (468,000 + 296,000) / 2 = 382,000

Average price = ($2,950 + $3,110) / 2 = 3030

Change in quantity = 296,000 - 468,000 = -172,000

Change in price = $3110 - $2950 = $160

percentage change in quantity demanded = (-172,000 / 382,000) x 100 = -0.4503 = -45.03%

percentage change in price = 160 / 3030 x 100 = 5.28%

Elasticity of demand = -45.03% / 5.28% = -8.53 = 8.53

8 0

3 years ago

Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a b

Naddika [18.5K]

Answer:

The correct answer is letter "A": beliefs.

Explanation:

Beliefs are preconceived ideas individuals have based on their thoughts and experiences. Some beliefs could be wrong moreover when the individual experience is little or insignificant about a topic. Beliefs tend to be subjective most of the time and represent a true for individuals that can be confirmed or corrected.

3 0

4 years ago

Do managers manage differently based on where they are in the organization

ivanzaharov [21]

Answer:

idunno

Explanation:

sorry ha hatdog

8 0

3 years ago

Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with similar characteristics are y

Keith_Richards [23]

Answer:

Ke = Rf + β(Rm – Rf)

ke = 2.2 + 1.32 (10.6 - 2.2)

Ke = 2.2 + 1.32(8.4)

ke = 2.2 + 11.088

ke = 13.288%

kp = D/Po

kp = $5.50/$64

Kp = 0.0859375 = 8.59375%

Kd = 6.7%

Kd after tax = 6.7(1-0.21) = 5.293

WACC = Ke(E/V) + kp(P/V) Kd(D/V)(1-T)

WACC = 13.288(3,075,000/12,419,500) + 8.59375(3,072,000/12,419500) + 5.293(6,272,500/12,419,500)

WACC = 3.29 + 2.126 + 2.6732

WACC = 8.09%

The correct answer is B

Market value of the company: $

Market value of equity = 75,000 x $41 = 3,075,000

Market value of preferred stock = 48,000 x $64 = 3.072,000

Market value of debt = 6500 x $96.5 = 6,272, 500

Market value of the company 12,419,500

The correct answer is B

Explanation:

In this question, we need to calculate cost of equity based on capital asset pricing model. Then, we will calculate cost of preferred stock as shown above. Thereafter, the after-tax cost of debt will be computed as illustrated above. We also need to calculate the market value of the company. Finally, we will calculate weighted average cost of capital as computed above.

4 0

4 years ago