Other Economics Answers

If the supply function in a market of face mask is Q = -10 + 10P and the demand function is 18 - 4P, and the government puts in a price floor at Php 3, what will the result be?

How do different microeconomics market structures affect supply and demand

Find the present value of an ordinary annuity for;

(a) P5500 per quarter for 6.5years at 5.6% compounded quarterly.

(b)P150 per month for 3years at 8% compounded semi-annually.

What is meant by globalisation, and in what ways does it affect different countries

How can Incoterms be used as a competitive advantage?

Given Q=400-8P + 0.05Y. Where P=15 and Y=200. Fina the price elasticity of demand and income elasticity of demand

Vhembe Limited has a target capital structure of 60% equity and 40% debt. The before-tax of debt is 8.50% and the cost of new equity is 12%. Tax rate is 28%. The finance manager is currently

considering a project with an expected return of 14% which will be financed from the issue of ordinary shares as all retained income is already budgeted for in more profitable projects. The

company recently issued debentures therefore, the present capital is more heavily weighted towards debt.

Required:

(a) Calculate WACC for Vhembe Limitd using the target capital structure. (4 Marks)

(b) Briefly explain (giving reasons) whether the project under consideration should be accepted or not. (5 Marks)

Vhembe Limited has a target capital structure of 60% equity and 40% debt. The before-tax of debt is 8.50% and the cost of new equity is 12%. Tax rate is 28%. The finance manager is currently considering a project with an expected return of 14% which will be financed from the issue of ordinary shares as all retained income is already budgeted for in more profitable projects. The company recently issued debentures therefore, the present capital is more heavily weighted towards debt.

Required:

(a) Calculate WACC for Vhembe Limitd using the target capital structure. (4 Marks)

(b) Briefly explain (giving reasons) whether the project under consideration should be accepted or not. (5 Marks)

Assess why perfect competition is a more ideal market structure than oligopoly.

Compare the firm’s pricing power between monopoly and monopolistic competition.