Suppose a statistical study finds that the demand for brand x automobile tires is q = 800 minus5p, where q is the number of brand x tires sold per year (in thousands of tires), and p is the price per tire. how confident would you be that this is an accurate equation for brand x tire demand?
a. not very confident because other factors affecting the sales of tires have been left out of the equation.
b. very confident because the negative sign in front of price (p) means the demand curve has a negative slope, as it should.
c. very confident because statistical studies are very accurate.
d. not very confident because methods other than statistical studies are better at estimating demand equations.

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.

Select all that apply. select the ways that labor unions can increase wages. collective bargaining reducing the labor supply increasing the demand for labor creating monopolies