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DedPeter
19 days ago
6

Consider the market for mobile applications, smartphones, and conventional phones. For each pair, identify whether they are comp

lements or substitutes:
Pairs of Goods and Services Complements Substitutes
Mobile applications and smartphones
Mobile applications and conventional phones
Smartphones and conventional phones
Business
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A manufacturer of plastic canoes and fiberglass kayaks is experiencing an increase in the price of kayaks in the marketplace, wh
harina [3808]

Answer:

An increase in the price of soccer balls.

Explanation:

Soccer balls consist of polyethylene and materials derived from petroleum. An escalation in oil prices will directly raise the costs of soccer balls since the expense of the raw materials has increased.

Kayaks also utilize materials sourced from oil, which is why their prices are on the rise too.

There's a direct correlation between soccer balls and kayaks because both rely on oil for their production.

8 0
3 months ago
Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering bor
arsen [3447]

Answer:

Option (D) is the right choice.

Explanation:

According to the Modigliani-Miller proposition, the cost of equity will adjust in a way to accommodate its debt obligations.

Cost of equity:

= WACC for an all-equity firm + (WACC for an all-equity firm - Cost of debt ) × (Debt-to-equity ratio)

Initially, when no debt was present,[ [TAG_20]]

WACC = cost of equity = 10%

The levered cost of equity:

= 10% + ( 10% - 6%) × 0.2

= 10.8%

Thus, Taggart's levered cost of equity would be approximately 11%.

8 0
3 months ago
Which 4 statements are true about the Chart of Accounts, how to make changes to the Chart of Accounts, and how products and serv
marusya05 [3725]

Answer:

The response is "Option A, C, D, E, and F".

Explanation:

Here are the accurate statements:

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6 0
4 months ago
Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou
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Answer:

He is less likely to spend on scones.

Explanation:

To understand spending habits, one must consider various factors involved in purchasing.

  1. Income: Some individuals have a tight budget, which leads them to reduce expenses affecting their spending capabilities. Jose may find purchasing scones less problematic since they are low-cost items, thus indicating a negative correlation.
  2. Substitution: This could influence Jones’ spending on scones since he typically buys both together; if he stops his coffee purchases, he may also forgo buying scones.
7 0
2 months ago
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