1. Make a distinction of the price elasticity of demand , in terms of elastic, unitary and inelastic.
2. Explain the law of diminishing marginal utility & the law of diminishing return.
3. Glass Growers has a cost of capital of 11.1 percent. The company is considering converting to a debt-equity ratio of .46. The interest rate on debt is7.3 percent. What would be the company’s new cost of equity? Ignore taxes.
12.85 percent
11.13 percent
12.36 percent
12.44 percent
11.61 percent