Answer: B
The marginal propensity to save will remain unchanged in each of the countries.
Explanation:
Marginal propensity to consume (MPC) is the percentage of increase or decrease in income that goes to consumption
Marginal propensity to save (MPS) is the percentage of increase or decrease in income that goes into savings. It can also be expressed as:
1 - MPC
Average propensity to save measures the level of saving at a given level of income.
The marginal propensity to save measures changes in savings relative to changes in income but the income remains unchanged here, the MPS also remains unchanged.
Answer:
The correct answer is letter "A": branding.
Explanation:
Branding is the marketing approach by which a company creates an exclusive image, name, or design or more than one at the same time to provide consumers with a product that is different from its competitors. Typically, in the branding provides the product's core feature with an additional advantage to engage consumers in purchasing.
Answer:
Cost of common equity is 16.49%
Explanation:
The WACC of weighted average cost of capital is the cost of a firm's capital structure. The capital structure of the firm can comprise of the following components namely debt, preferred stock and common stock.
For a firm which has only debt and equity, the WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- we multiply the cost of debt (rD) by (1 - tax rate) to calculate the after tax cost of debt
Plugging in the values of the available components, we can calculate the cost of common equity to be,
0.1370 = 0.3 * 0.12 * (1 - 0.4) + 0.7 * rE
0.1370 = 0.0216 + 0.7 * rE
0.1370 - 0.0216 = 0.7 * rE
0.1154 / 0.7 = rE
rE = 0.164857 or 16.4857% rounded off to 16.49%
Answer:
A. $575,000 + $125,000 - $560,000
Explanation:
According to the ending inventory report, cost of sales would be calculated as follow;
Cost of sales = Beginning inventory + Purchase - Ending inventory
Cost of sales = $575,000 + $125,000 - $560,000
