Abc inc., produces baby food in a developing country. firms in this industry produce differentiated products such that no two brands of baby food are perfect substitutes. the demand for? abc's product has traditionally been high.? however, recent data on economic indicators suggests a shift in? people's consumption patterns. there has been a marked increase in the per capita gdp in this country. while this has led to an increase in the demand for many goods and? services, the demand for? abc's baby food has fallen even though the other brands of baby food are still doing well.

which of the following is most strongly implied by this?

a. ? abc's baby food is a giffen good.

b. the equilibrium price of? abc's baby food is likely to increase.

c. most baby food brands are considered as inferior goods.

d. the demand curve for? abc's baby food is continually shifting rightward.

e. the demand curve for baby food in general has shifted to the left.

Bayside began 2014 with an inventory t-account debit balance of $155,000. inventory purchases during the year amounted to $75,000. there were no inventory-related write-downs or losses. what is its december 31, 2014, inventory account balance?

Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity. calculate the cost of new stock using the dividend growth approach. what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics. each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings. equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.