Answer:
B. real-options perspective.
Explanation:
Based on the scenario being described within the question it can be said that this approach to strategic alliance is referred to as a real-options perspective. This perspective refers to the ability of an individual or company to have the freedom to choose between logical financial options in capital investments in order to try and make the best choices and decisions. Which is what Elegance Inc. did when they saw that the company they were supporting was most likely to fail due to their unforeseen problem.
Answer: (1) 700 pizzas
(2) Its revenue increases by $2600.
Explanation:
Given that,
price elasticity of demand for his pizza = -4
Percentage change in price = 10%
Initial Quantity,
= 500 Pizzas
Elasticity of demand = 
-4 = 
= -4 × 0.1
= 0.4
= 0.4
∴ 
= 700
Initial price, 
= $20
Changed price, 
= $18
Revenue at t = 0
= 500 × 20 =$10000
Revenue at t = 1
= 700 × 18 = $12600
Therefore, from the above calculations it was seen that his revenue increases by ($12600 - $10000)= $2600 and its sales increases to 700.
Answer:
TurnBull's Weighted Average cost of capital is higher by 1.07% if the used common Equity to raised the capital.
Explanation:
First, using the WACC formula and using Retained earnings cost of Capital. we get the following outcome.
WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital
WACC = 45% x 8.33% + 4% x 12.20% + 51% x 14.70% =
WACC = 3.75% + 0.49% + 7.50% = 11.73%
Second, using the WACC formula and using common equity cost of Capital. we get the following outcome.
WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital
WACC = 45% x 8.33% + 4% x 12.20% + 51% x 16.80% =
WACC = 3.75% + 0.49% + 8.57% = 12.80%
Increase Cost using common equity over Retained earnings is (12.80% - 11.73% ) = 1.07%
Answer:
Assets = Liabilities + Owners' Equity
Explanation:
The reason is that it is the basic accounting equation that forms the basics of the double entry. It is main equation from which all the Gernally Accepted Accounting Principles and International Accounting Standards had originated. This helps us to understand a big picture of an entity either it is by record keeping, financial statement analysis, uncovering frauds, provision of system of check and balance and many more. This is the reason why the basic accounting equation has immense importance in Sarbanes Oxley Act, Companies Act, etc.
Answer:
Learning curve
Explanation:
Reference is made to the time and cost with respect to the fact that the proposed system is about the same size as others. Learning curve theory teaches to identify cost and time in relation to specific jobs
