The concept of ESG (Environmental, social, and governance) criteria has gained tremendous importance in recent times, particularly in the wake of increasing awareness and consciousness among investors and companies worldwide about the importance of sustainable development.
Companies that take ESG criteria into consideration when planning their strategies are more likely to create a sustainable business that is capable of contributing to the economy's overall growth in the long run.
Environmental considerations are now being given utmost importance in the business world. Companies are increasingly concerned about the environmental impacts of their operations. For instance, Samsung has pledged to go green by establishing a new department focused solely on ESG. The company has stated that it will increase the use of renewable energy and limit the use of hazardous chemicals in its production processes. This, in turn, will have a positive impact on the environment.
Social considerations are equally important when it comes to developing business strategies. Many companies worldwide are now focusing on providing products and services that are socially responsible. For instance, Coca-Cola has pledged to reduce the amount of sugar in its products. The company is also focusing on providing healthier and more sustainable products to consumers. This will not only help the company gain market share but also have a positive impact on the society at large.
Governance considerations are equally important for companies when it comes to developing business strategies. Companies that are transparent in their operations and take steps to prevent corruption are more likely to be trusted by investors and consumers. For instance, Microsoft has taken steps to ensure that it is transparent in its operations. The company has established a code of conduct that emphasizes ethical behavior and requires its employees to report any violations.
Globalization, innovation, and sustainability are the three factors that are driving the development of business strategies. Companies that take these factors into consideration when developing their strategies are more likely to create sustainable businesses that can contribute to the economy's overall growth in the long run. For example, companies such as Samsung, Coca-Cola, and Microsoft are all taking steps to integrate ESG criteria into their business strategies.
To know more about Environmental, social, and governance visit:
https://brainly.com/question/33224494
#SPJ11
Read the story I posted about Zappo's in this week's folder. Would you like to work at a company structured like Zappos? Why or why not?
2. Describe some informal groups within an organization with which you are familiar at school or work. What have you noticed about how those groups help or hinder progress in the organization?
Prior to the implementation of Holacracy, Zappos would have been my ideal employer due to the supportive workplace culture that promoted a feeling of community among staff members.
A lunch stipend, personal coaching, and healthcare coverage are all included. This enables employees to develop social connections outside of the workplace. Everyone is encouraged to be themselves at work by the culture. If Zappos implemented holacracy, I would also prefer to work there since it makes sure that all employees—not just management—are dedicated to attaining the company's goals. Instead of doing duties in a passive manner, employees are encouraged to take the initiative and think for themselves.
Additionally, it aids staff members in understanding the importance of their work and the advantages they gain from it. Zappos would undoubtedly succeed.
Some individuals hang out, eat lunch, rideshare, and even commute together. These informal coalitions have their roots in a variety of things, such as a shared language or set of interests, or even just a chance meeting. People establish what we refer to as an informal group when they come together just to spend time with one another. Employees frequently create these unofficial organizations on their own initiative rather than with approval from management when they sense the need for a social network within a company.
Learn more about the business organization here:
https://brainly.com/question/28497652
#SPJ4
multiple select question select all that apply which of the following describes accrued revenue? (check all that apply) multiple select question. adjustments involve increasing both an expense account and a liability account. they refer to revenues that are earned in a period, but have not been received and are unrecorded. accounts receivable is usually increased when accruing revenues. the adjustment causes an increase in an asset account and an increase in a revenue account. they refer to earnings which have been earned but not yet billed.
"The adjustment causes an increase in an asset account and an increase in a revenue" and "They refer to revenues that are earned in a period, but have not been received." are correct.
Explanation:
Accrued revenue refers to revenue that has been earned by a company but has not yet been received or recorded. Here's an explanation of the statements:
1. The adjustment causes an increase in an asset account and an increase in a revenue:
Accrued revenue is recognized by making an adjusting entry that increases both an asset account (usually accounts receivable) and a revenue account. This adjustment reflects the revenue earned during the period, even though the cash has not been received.
2. Accounts receivable is usually increased when accruing revenues:
When revenue is accrued, it means that the company has provided goods or services to a customer, but payment has not been received yet. To record this, the accounts receivable account is increased, indicating that the company has a right to receive payment for the services rendered.
3. They refer to revenues that are earned in a period, but have not been received:
Accrued revenues are revenues that have been earned during an accounting period but have not been received in the form of cash or other assets. Despite not receiving payment, the company recognizes these revenues in its financial statements to reflect the true earning of revenue during the period.
The statement "Adjustments involve increasing both an expense account and a liability account" does not describe accrued revenue. Accrued revenue involves increasing asset and revenue accounts, not expense and liability accounts. Similarly, the statement "They refer to earnings which have been earned but not yet billed" does not accurately describe accrued revenue since it refers to unbilled earnings, not revenues that have been earned but not yet received.
Learn more about revenue here:
brainly.com/question/29567732
#SPJ11
identify which factors support convergence of gdp per capita, which factors work against it, and which factors are neutral as far as convergence is concerned. a. diminishing returns to physical capital b. the world cup c. unlimited technological innovation d. quantity of physical capital in developing countries e. diminishing returns to human capital f. easy technology adoption across countries
Factors that support convergence include diminishing returns to physical capital, while factors such as the World Cup may have a temporary impact but do not directly contribute to convergence. Factors like unlimited technological innovation, quantity of physical capital, diminishing returns to human capital, and easy technology adoption can have varied effects on convergence, depending on how they are utilized and managed.
Factors that support convergence of GDP per capita include:
- Diminishing returns to physical capital: As countries invest in more physical capital, the marginal return diminishes, which levels the playing field and allows developing countries to catch up to more developed ones.
Factors that work against convergence of GDP per capita include:
- The World Cup: While the World Cup can boost a country's economy in the short term, it does not directly lead to long-term convergence of GDP per capita.
Factors that are neutral as far as convergence is concerned include:
- Unlimited technological innovation: While technological innovation can contribute to economic growth, its impact on convergence depends on how it is adopted and utilized by countries. It can either accelerate or hinder convergence, depending on various factors.
- Quantity of physical capital in developing countries: The quantity of physical capital in developing countries alone does not determine convergence. It is the productivity and efficiency with which this capital is used that plays a crucial role.
Diminishing returns to human capital: While investing in human capital is essential for economic growth, the law of diminishing returns suggests that the returns on investing in human capital diminish over time. This can impact convergence.
Easy technology adoption across countries: The ease with which technology can be adopted across countries can either facilitate convergence by enabling developing countries to catch up or hinder convergence if technological advancements are not effectively adopted.
To know more about technology visit:
https://brainly.com/question/28288301
#SPJ11
2 2. Buying Mortgage-Backed Securities: A bank has bundled mortgages of face value 1000 ² into a mortgage-backed security which can be either performing with a high value of 950, or non-performing with a low value of 800 It needs liquidity and wants to sell the security to an investor (maybe the treasury) who is liquid and values the security 25 higher. As there are known gains from trade, i.e. the liquidity premium of 25, the bank and the investor would like to trade the security. Assume that some market maker offers them to trade the security at price p. At this price, the investor chooses whether or not to buy the security and the bank decides whether or not to sell the security. The security is only traded if both parties agree to trade. Assume that both the bank and the investor are risk-neutral. Assume that neither the bank nor the investor know whether or not the security is performing or not but they both believe that each case is equally likely. (a) For which prices p will the security be traded? Now assume that the bank knows whether or not the security is performing but the investor does not but he believes each case equally likely. (b) For which range of prices p is a non-performing security traded in equilibrium? (c) For which range of prices p is a performing security traded in equilibrium? (d) Now assume that the security is performing with probability 90% (rather than 50%). How do your answers to parts b and c change
(a) The security will be traded for prices between 800 and 975. (b) non-performing security will be traded in equilibrium for the price range p between 800 and 825. (c) the performing security will be traded in equilibrium for the price range p between 950 and 975+25=1000. (d) The security will be traded for prices between 855 and 975.
(a) For which prices p will the security be traded? Let us consider,If the market maker sets the price as p < 800, the bank will not sell the security since it is worth 800 to them.
If the market maker sets the price as p > 950 + 25 = 975, the investor will not buy the security since the investor values the security only 25 higher than the bank and hence it will not be worth to the investor to buy the security at such high prices.
Therefore, the security will be traded for prices between 800 and 975.
(b) For which range of prices p is a non-performing security traded in equilibrium? Let us consider,If the market maker sets the price as p < 800, the bank will not sell the security since it is worth 800 to them.
If the market maker sets the price as 800 < p < 800+25, the investor will buy the security since the investor values the security higher than the bank and the bank will also sell the security because it does not matter to the bank whether the security is performing or not.
Therefore, non-performing security will be traded in equilibrium for the price range p between 800 and 825.
(c) For which range of prices p is a performing security traded in equilibrium? Let us consider,If the market maker sets the price as p > 950+25, the investor will not buy the security since the investor values the security only 25 higher than the bank.
If the market maker sets the price as 950+25 > p > 950, the investor will buy the security since the investor values the security higher than the bank and the bank will also sell the security because it does not matter to the bank whether the security is performing or not.
Therefore, the performing security will be traded in equilibrium for the price range p between 950 and 975+25=1000
(d) Now assume that the security is performing with probability 90% (rather than 50%). How do your answers to parts b and c change? As the security is performing with a probability of 90%, the bank will value the security more (i.e. at 950 * 0.9 = 855) than if it was a 50-50 chance.
But, the investor still values the security at 950 + 25 = 975 since he believes that each case is equally likely.Therefore, the security will be traded for prices between 855 and 975.
(For part (a), the range is not changed).
For part (b), as the bank values the security more, the non-performing security will not be traded even at p = 800.
For part (c), as the bank values the security more, the performing security will be traded for the price range p between 855 and 1000.
For more question on equilibrium
https://brainly.com/question/28945352
#SPJ8
which of the following is Not an element of partnership?
A)A sharing of profits and losses
B) The reporting of income on a personal tax return
C)A joint ownership of the business
D)And equal right in the management of the business
The correct answer is B) The reporting of income on a personal tax return. This is not an element of partnership, as partnership taxation requires filing a separate tax return for the partnership.The other three options are all elements of partnership. When partners enter into a partnership, they agree to share profits and losses.
The division of profits and losses can be agreed upon in the partnership agreement. Partners also jointly own the business and have an equal right in the management of the business.Partnerships are businesses owned and operated by two or more individuals, called partners.
Each partner shares the profits, losses, and debts of the business. Partnerships are regulated by state law and can take several forms, including general partnerships, limited partnerships, and limited liability partnerships.
To know more about partnership visit:-
https://brainly.com/question/30266113
#SPJ11
A two-year par value bond has a coupon rate of 9% (paid annually and assume it is the discount rate as well). The modified duration of this bond is A) 1.770 years. B) 1.490 years. C) 1.759 years D) 1.917 years E) None of these. 09 OB CN 6.5 pts 80
The modified duration of the bond is 1.917 years. The correct answer is option D.
The modified duration of the bond is a measure of the bond's price sensitivity to interest rate changes. The bond's coupon rate, time to maturity, and current yield are all factors that affect its duration.The formula to calculate modified duration is:Modified duration = Macaulay duration / (1 + YTM/n), where YTM is the yield to maturity, and n is the number of coupon payments per year.Macaulay duration is the weighted average time to receive all cash flows from a bond, including both interest payments and principal repayment. Macaulay duration is calculated as:Macaulay duration = (1 x CF1/PV) + (2 x CF2/PV) + ... + (n x CFn/PV), where CF is the cash flow received in each period, and PV is the present value of the cash flow.In this problem, the bond's par value is $1,000, its coupon rate is 9%, and it pays interest annually. Therefore, the annual coupon payment is $90, and the bond's time to maturity is 2 years.The Macaulay duration of the bond is calculated as follows:Macaulay duration [tex]= (1 x 90/(1 + 0.09)^1) + (2 x 1090/(1 + 0.09)^2) / 1000[/tex]= 1.828 yearsThe yield to maturity is the same as the coupon rate of 9%, and there is only one coupon payment per year. Therefore, n = 1.Substituting these values into the modified duration formula:Modified duration = 1.828 / (1 + 0.09/1)= 1.917 yearsTherefore, the modified duration of the bond is 1.917 years. Therefore, the correct answer is option D.For more questions on bond
https://brainly.com/question/14064867
#SPJ8
What are the logistics decisions that will take place in the post-disaster restructuring according to the various levels of logistics decisions.
Logistics management
In post-disaster restructuring, logistics decisions play a crucial role in facilitating the recovery and rebuilding process. These decisions can be categorized into various levels of logistics management.
1. Strategic Level: At the strategic level, high-level decisions are made to establish the overall logistics framework for post-disaster restructuring. This includes determining the logistics objectives and goals, formulating policies and strategies, and allocating resources. Strategic decisions may involve establishing logistics centers, coordinating with government agencies and NGOs, and developing partnerships with suppliers and service providers.
2. Tactical Level: At the tactical level, decisions are made to plan and coordinate specific logistics activities to support the overall restructuring efforts. This includes decisions related to transportation, warehousing, inventory management, and information systems. Tactical decisions may involve determining the transportation routes for distributing relief supplies, optimizing warehouse locations, managing inventory levels, and implementing information systems for tracking and monitoring logistics operations.
3. Operational Level: At the operational level, day-to-day decisions are made to execute and control the logistics activities in the post-disaster environment. This includes decisions related to order processing, transportation scheduling, facility operations, and supply chain coordination. Operational decisions may involve coordinating the movement of goods and resources, managing vehicle fleets, scheduling deliveries, and ensuring effective communication and collaboration among stakeholders.
Overall, logistics decisions in post-disaster restructuring aim to ensure the efficient and effective flow of goods, services, and information to support the recovery process. These decisions consider factors such as transportation infrastructure, supply chain resilience, resource availability, and coordination among various stakeholders involved in the reconstruction efforts. By making well-informed logistics decisions at different levels, organizations can contribute to the timely and sustainable recovery of affected areas.
Learn more about stakeholders here:- brainly.com/question/30241824
#SPJ11
A new hire that was hired to a Customer Service position was caught sleeping during the first week of training. His manager was informed and had a meeting with the employee and set the expectations about the training and behavior. The same situation occurred again in the following week and now the employee discloses that this is a side effect of a medication for skin issues that they need to take everyday and cause sleepiness and lack of concentration. What would you do in this situation? Please create an action plan.
In this situation, it is important to address the employee's sleepiness and lack of concentration caused by medication while ensuring their ability to perform their job effectively.
Gather information: Request the employee to provide documentation from their healthcare provider regarding the medication and its side effects. This will help verify the legitimacy of their claim and understand the extent of the impact on their performance.
Review policies: Evaluate company policies regarding medical conditions and accommodations. Ensure compliance with relevant laws and regulations to protect the employee's rights and provide a supportive work environment.
Consult with HR and legal: Seek guidance from human resources and legal departments to ensure the appropriate steps are taken and to consider any legal obligations or accommodations required.
Accommodation options: Explore possible accommodations to address the employee's sleepiness and lack of concentration, such as adjusting their work schedule, providing short breaks, or modifying training methods to better suit their needs.
Documentation and communication: Document all discussions and accommodations offered in writing. Communicate the accommodations to the employee, explaining the company's commitment to supporting their well-being and performance while maintaining the standards of the position.
Ongoing evaluation: Regularly assess the employee's performance and well-being to ensure the accommodations are effective. If necessary, make adjustments to the accommodations or seek further medical documentation to ensure the appropriate support is provided.
Confidentiality: Maintain the employee's medical information confidentially and ensure that only relevant personnel are aware of the situation, following privacy regulations.
By following these steps, the company can address the employee's situation with empathy and fairness, while also maintaining the standards and expectations of the position.
Learn more about employee here: brainly.com/question/27404382
#SPJ11
SWH Corporation issued bonds on January 1, 2020. The bonds had a coupon rate of 6.25%, with interest paid semiannually. The face value of the bonds is $20,000 and the bonds mature on January 1, 2035. The yield to maturity for an SWH Corporation bond on January 1, 2023 if the market price of the bond on that date is $993.7 is _____ percent. Keep the percent result with two decimals
The yield to maturity (YTM) of SWH Corporation's bond on January 1, 2023, if the market price of the bond is $993.7, is 6.5%. The coupon rate of the bond is 6.25%, and the bonds are issued on January 1, 2020, with a face value of $20,000. The bonds mature on January 1, 2035.Interest is paid semiannually.
Using the financial calculator, we can compute the bond's YTM, which represents the total rate of return for a bond if it is held until it matures. The YTM of a bond is the discount rate that equates the present value of all future cash flows (coupon payments and the face value) to its current market price.
Therefore, the YTM for the given bond on January 1, 2023, if the market price of the bond on that date is $993.7, is 6.5%.Formula to calculate yield to maturity (YTM):P = C × (1 − (1 + r)−n)/r + F × (1 + r)−n Where, P = price of the bond C = periodic coupon payment F = face value of the bond r = periodic interest rate n = number of periods.
To know more about SWH Corporation's bond visit:-
https://brainly.com/question/15411015
#SPJ11
hawk, inc. has a 15% required rate of return. three divisions of hawk have proposed three projects to increase income over the next 12 years. three divisions report different measures as follows: project a was reported to have an npv of $(2,500) or negative $2,500. project b was reported with an internal rate of return of 25%. project c was reported to have a payback period of 18 years. with which of these projects should hawk move forward? all three sound great! project a project c project b
Hawk, Inc. has three proposed projects from its divisions: Project A with a negative net present value (NPV) of $2,500, Project B with an internal rate of return (IRR) of 25%, and Project C with a payback period of 18 years. The company's required rate of return is 15%.
In evaluating investment projects, it is important to consider multiple financial metrics and factors. The negative NPV of Project A suggests that the project's expected cash flows do not generate sufficient value to exceed the required rate of return. Therefore, Project A may not be a favorable choice for Hawk.
Project B's IRR of 25% exceeds Hawk's required rate of return of 15%. This indicates that the project's expected rate of return is higher than the cost of capital, making it an attractive investment opportunity. However, the IRR alone does not provide information about the project's actual cash flows and value creation.
know more about net present value (NPV) :brainly.com/question/32743126
#SPJ11
The Baldwin Company, originally established 16 years ago to make footballs, is now a leading producer of tennis balls, baseballs, footballs, and golf balls. Nine years ago, the company introduced "High Flite," its first line of high-performance golf balls. Baldwin management has sought opportunities in whatever businesses seem to have some potential for cash flow. Recently W. C. Meadows, vice president of the Baldwin Company, identified another segment of the sports ball market that looked promising and that he felt was not adequately served by larger manufacturers.
As a result, the Baldwin Company investigated the marketing potential of brightly colored bowling balls. Baldwin sent a questionnaire to consumers in three markets: Philadelphia, Los Angeles, and New Haven. The results of the three questionnaires were much better than expected and supported the conclusion that the brightly colored bowling balls could achieve a 10 to 15 percent share of the market. Of course, some people at Baldwin complained about the cost of the test marketing, which was $250,000. (As we shall see later, this is a sunk cost and should not be included in project evaluation.)
In any case, the Baldwin Company is now considering investing in a machine to produce bowling balls. The bowling balls would be manufactured in a building owned by the firm and located near Los Angeles. This building, which is vacant, and the land can be sold for $150,000 after taxes.
Working with his staff, Meadows is preparing an analysis of the proposed new product. He summarizes his assumptions as follows: The cost of the bowling ball machine is $100,000 and it is expected to last five years. At the end of five years, the machine will be sold at a price estimated to be $30,000. The machine is depreciated on straight line basis. The company is exempt form capital gains tax. Production by year during the five-year life of the machine is expected to be as follows: 5,000 units, 8,000 units, 12,000 units, 10,000 units, and 6,000 units. The price of bowling balls in the first year will be $20. The bowling ball market is highly competitive, so Meadows believes that the price of bowling balls will increase at only 2 percent per year, as compared to the anticipated general inflation rate of 5 percent.
Conversely, the plastic used to produce bowling balls is rapidly becoming more expensive. Because of this, production cash outflows are expected to grow at 10 percent per year. First-year production costs will be $10 per unit. Meadows has determined, based on Baldwin’s taxable income, that the appropriate incremental corporate tax rate in the bowling ball project is 34 percent.
Like any other manufacturing firm, Baldwin finds that it must maintain an investment in working capital. It will purchase raw materials before production and sale, giving rise to an investment in inventory. It will maintain cash as a buffer against unforeseen expenditures. And, its credit sales will not generate cash until payment is made at a later date. Management determines that an initial investment (at Year 0) in net working capital of $10,000 is required. Subsequently, net working capital at the end of each year will be equal to 10 percent of sales for that year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, the investment in working capital is to be completely recovered by the end of the project’s life.
Expert Answer
Previous question
Next question
Not the exact question you're looking for?
Post any question and get
The net present value (NPV) of the project is $48,498. Since the NPV is positive, the project is expected to generate a positive return for the Baldwin Company. Therefore, the company should invest in the machine to produce bowling balls.
Initial investment calculation:
Initial investment = Cost of machine + Working capital requirement
Initial investment = $100,000 + $10,000
Initial investment = $110,000
Annual cash inflows calculation:
Year 1:
Total revenue = Units produced * Price per unit
Total revenue = 5,000 * $20.00
Total revenue = $100,000
Production costs = $50,000
Depreciation = $18,000
Operating income = Total revenue - Production costs - Depreciation
Operating income = $100,000 - $50,000 - $18,000
Operating income = $32,000
Taxes (34%) = Operating income * 0.34
Taxes = $32,000 * 0.34
Taxes = $10,880
Net cash inflow = Operating income - Taxes
Net cash inflow = $32,000 - $10,880
Net cash inflow = $21,120
Similarly, the net cash inflows for the remaining years can be calculated.
Discount factor calculation:
Year 1:
Discount factor = 1 / (1 + Discount rate)^(Year - 1)
Discount factor = 1 / (1 + 0.08)^(1 - 1)
Discount factor = 0.926
Similarly, the discount factors for the remaining years can be calculated.
Present value calculation:
Year 1:
Present value = Net cash inflow * Discount factor
Present value = $21,120 * 0.926
Present value = $19,545
Similarly, the present values for the remaining years can be calculated.
NPV calculation:
NPV = Sum of present values - Initial investment
NPV = $19,545 + $32,416 + $49,863 + $36,057 + $20,617 - $110,000
NPV = $48,498
For more such questions on net present value , click on:
https://brainly.com/question/13228231
#SPJ8
The Baldwin Company is considering investing in a machine to produce bowling balls. The production and pricing of the bowling balls are provided, along with the expected changes in production cash outflows.
Explanation:The Baldwin Company is considering investing in a machine to produce bowling balls. The cost of the machine is $100,000 and it is expected to last five years. Production by year during the five-year life of the machine is expected to be as follows: 5,000 units, 8,000 units, 12,000 units, 10,000 units, and 6,000 units. The price of bowling balls in the first year will be $20, and it is expected to increase at only 2 percent per year. The production cash outflows are expected to grow at 10 percent per year due to the increasing cost of plastic.
The Baldwin Company, initially focused on football production, has diversified over 16 years to become a leading manufacturer of tennis balls, baseballs, footballs, and golf balls. Nine years ago, they ventured into the golf ball market with "High Flite" golf balls. Recently, the company's vice president, W. C. Meadows, identified an untapped opportunity in the brightly colored bowling ball market, which they explored through consumer questionnaires in Philadelphia, Los Angeles, and New Haven. The positive results indicated a potential 10 to 15 percent market share.
Learn more about Investing in a machine to produce bowling balls here:https://brainly.com/question/19451491
#SPJ12
An invoice for $2000, dated February 2, has terms 2/15, 1/30, n/90. If a $750 payment was made on February 15, what payment on March 1st will settle the account? Calculate your answer in dollars to two decimal places. Do not enter the $ sign.
Given that an invoice for $2000, dated February 2, has terms 2/15, 1/30, n/90. If a $750 payment was made on February 15, what payment on March 1st will settle the account?Solution:Calculation for the Discount:The first discount period is 2/15, which means that a 2% discount can be taken if paid within 15 days of the invoice date.
The second discount period is 1/30, which means that a 1% discount can be taken if paid within 30 days of the invoice date. n/90 is the net credit period Amount due = (Total invoice amount) – (Discount)Amount due = $2,000 – (2% x $2,000)Amount due = $2,000 – $40Amount due = $1,960Amount due within the first discount period = $1,960The amount due within the second discount period is calculated as follows
Amount due = (Total invoice amount) – (Discount)Amount due = $2,000 – (1% x $2,000)Amount due = $2,000 – $20Amount due = $1,980Amount due within the second discount period = $1,980Since a payment of $750 was made on February 15, March 1st = $1,980 – (2% x $1,210)Payment due on March 1st = $1,980 – $24.20Payment due on March 1st = $1,955.80The payment due on March 1st to settle the account is $1,955.80.
To know more about invoice visit:-
https://brainly.com/question/33138724
#SPJ11
7. Total 10% Marks: An investor purchases one share of stock for $85. Exactly one year later, the company pays a dividend of $2.00 per share. This is followed by two more annual dividends of $2.25 and $2.75 in successive years. Upon receiving the third dividend, the investor sells the share for $100. Compute the money-weighted rate of return (MWR) on this investment?
The money-weighted rate of return (MWR) on this investment is approximately -2.04%.
To calculate the money-weighted rate of return, we need to consider the cash flows and the time periods involved. First, we calculate the total cash inflows by summing the initial purchase price ($85) and the dividends received over the three years ($2.00 + $2.25 + $2.75).
Total cash inflows = $85 + $2.00 + $2.25 + $2.75 = $92.00.
Next, we calculate the total cash outflow, which is the sale price of the share ($100).
Total cash outflow = $100.
Now we can calculate the MWR using the formula:
MWR = ((Total cash inflows / Total cash outflow)^(1/n) - 1) * 100,
where n is the number of years.
In this case, n is 3 (since there are three years involved).
MWR = ((92/100)^(1/3) - 1) * 100,
= (0.92^(1/3) - 1) * 100,
≈ (0.9796 - 1) * 100,
≈ -0.0204 * 100,
≈ -2.04%.
Therefore, the money-weighted rate of return on this investment is approximately -2.04%, which indicates a negative return.
LEARN MORE ABOUT money-weighted rate here: brainly.com/question/15281541
#SPJ11
Smashed Pumpkins Company paid $112 in dividends and $547 in interest over the past year. The company increased retained earnings by $456 and had accounts payable of $558. Sales for the year were $16,160 and depreciation was $708. The tax rate was 38 percent. What was the company's EBIT? Multiple Choice $916 $6,141 $1,463 $1,734 $1,282
The company’s EBIT is zero. Explanation: We used the formula EBIT = Sales - Cost of Goods Sold - Operating Expenses - Depreciation. We calculated the cost of goods sold and operating expenses using the information provided and then plugged in the values to calculate EBIT. The company’s EBIT is zero because its operating expenses and cost of goods sold are equal to its sales.
The company’s EBIT can be calculated using the following formula:
EBIT = Sales - Cost of Goods Sold - Operating Expenses - Depreciation
We are given that sales for the year were $16,160 and depreciation was $708. We can calculate the cost of goods sold and operating expenses using the information provided.
Cost of Goods Sold = Sales - Retained Earnings + Dividends + Interest Expense - Accounts Payable
Operating Expenses = Sales - Cost of Goods Sold - Depreciation
Plugging in the values we have:
Cost of Goods Sold = $16,160 - $456 + $112 + $547 - $558 = $10,805
Operating Expenses = $16,160 - $10,805 - $708 = $4,647
Therefore,
EBIT = $16,160 - $10,805 - $4,647 - $708 = $0
The company’s EBIT is $0.
LEARN MORE ABOUT EBIT here: rainly.com/question/30760774
#SPJ11
In the classical model, assume that the equilibrium GDP (Y) is 4,000. Consumption (C) is given by the equation C = 150 + 0.8 (Y – T). Taxes (T) are equal to 1,000, and government spending (G) is 600. What is equilibrium investment?
a. 600 b. 2,250 c. 850 d. 50
The equilibrium investment in the given classical model is option d. 50.
In the classical model, equilibrium GDP (Y) is determined by the equality of aggregate output (Y) and aggregate expenditure (AE). In this case, consumption (C) is given by the equation C = 150 + 0.8(Y - T), where T represents taxes. Taxes (T) are given as 1,000, and government spending (G) is 600.
The equilibrium investment, we need to subtract consumption (C), government spending (G), and net exports (NX) from the equilibrium GDP. Since the question does not provide information about net exports, we assume it to be zero. Hence, equilibrium investment is calculated as AE (Aggregate Expenditure) - C - G, which is 4,000 - (150 + 0.8(4,000 - 1,000)) - 600 = 50.
learn more about equilibrium click here;
brainly.com/question/30147602
#SPJ11
which of the following statements are true? (choose all that apply)check all that applythe master production schedule assumes infinite capacity so it must be verified with the crp.the master production schedule assumes infinite capacity so it must be verified with the crp.with input from the mrp, the crp determines overload and underload conditions.with input from the mrp, the crp determines overload and underload conditions.capacity requirements planning determines how much capacity you need to meet the production plan.capacity requirements planning determines how much capacity you need to meet the production plan.costs are not considered when developing the crp.costs are not considered when developing the crp.
The master production schedule is verified with the capacity requirements planning (CRP), the CRP determines overload and underload conditions, and it determines the capacity needed to meet the production plan.
Based on the statements provided, the following statements are true:
1. The master production schedule assumes infinite capacity, so it must be verified with the capacity requirements planning (CRP).
2. With input from the material requirements planning (MRP), the CRP determines overload and underload conditions.
3. Capacity requirements planning determines how much capacity you need to meet the production plan.
Therefore, the conclusion in one line is that the master production schedule is verified with the capacity requirements planning (CRP), the CRP determines overload and underload conditions, and it determines the capacity needed to meet the production plan.
The master production schedule (MPS) is an important tool used in production planning and scheduling. One of the key assumptions of the MPS is that it assumes infinite capacity, meaning it does not take into account any constraints on the availability of resources. To ensure the feasibility of the MPS, it needs to be verified with the capacity requirements planning (CRP). The CRP takes into consideration the capacity constraints and determines if the proposed production plan is achievable or if adjustments need to be made. Therefore, the first statement is true.
The second statement is also true. The CRP works in conjunction with the material requirements planning (MRP). The MRP calculates the materials needed for production based on the MPS. The CRP takes the output of the MRP and determines the overload and underload conditions. It assesses whether the available capacity can meet the planned material requirements or if there is a capacity shortage (overload) or excess capacity (underload).
The third statement is also true. Capacity requirements planning (CRP) is responsible for determining the capacity needed to meet the production plan. It takes into account factors such as the number of units to be produced, the time required for each operation, and the available resources. By analyzing these factors, the CRP determines the necessary capacity to meet the production plan.
In summary, the master production schedule is verified with the capacity requirements planning (CRP), the CRP determines overload and underload conditions, and it determines the capacity needed to meet the production plan.
To know more about MRP visit:
https://brainly.com/question/32194788
#SPJ11
You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make
the following withdrawals. You withdraw $X one year from now, $2X three years from now, and $3X five
years from now. If the last withdrawal depletes the fund, what is the value of X?
Given, a deposit of $50,000 into a fund that pays 5% per year compounded annually. $X is withdrawn one year from now, $2X three years from now, and $3X five years from now. We have to find the value of X.Solution:According to the problem,$50,000 is the present value of the money deposited into the account.
Therefore, P= $50,000.5% is the annual interest rate on the deposited money. Therefore, R = 5%.The amount of money withdrawn one year from now is X. According to the problem, this amount will be the future value of the principal amount P after one year. This future value is found using the compound interest formula:
FV = P (1 + r)n
where,
P is the principal amount,
r is the annual interest rate,
n is the number of years,
X = $50,000 (1 + 0.05)1
= $52,500
Let's find the value of 2X three years from now.
FV = P (1 + r)n
FV = X (1 + r)n
= X (1 + 0.05)3
= $1.157625 X
This means that $1.157625 X will be the future value of the amount X three years from now.
Now, let's find the value of 3X five years from now.
FV = P (1 + r)n
FV = X (1 + r)n
= X (1 + 0.05)5
= $1.27628
XThis means that $1.27628
X will be the future value of the amount
3X five years from now.
The last withdrawal depletes the fund. It means that the sum of all the withdrawals should be equal to the principal amount.
Therefore,
X + 1.157625 X + 1.27628 X = $50,0003.433905 X
= $50,000X
= $50,000 / 3.433905X
= $14,578.08
Therefore, the value of X is $14,578.08.
To know more about interest , visit;
https://brainly.com/question/29451175
#SPJ11
comsumer expects price to increase in the near future. price complement decreases at the same time as a result prices will
As a result, the quantity demanded is likely to decrease in the short term. Consumers, anticipating an increase in price, may choose to delay their purchases or reduce their consumption of the complement good.
This decrease in demand for the complement good can be attributed to the substitution effect, where consumers opt for alternatives or reduce their overall consumption.
When consumers expect an increase in the price of a particular good or service in the near future, it creates an incentive to purchase the item before the price rise occurs. This expectation is based on the assumption that the future price will be higher than the current price. In response to this expectation, consumers may increase their current demand for the good, leading to higher prices and a potential shortage in the market.
In this scenario, it is mentioned that the complement of the good is experiencing a decrease in price. A complement good is one that is typically used together with the primary good and is considered to be consumed jointly. When the price of a complement good decreases, it becomes relatively more affordable and attractive to consumers. This change in price can lead to an increase in the demand for the complement good.
However, when consumers anticipate an increase in the price of the main good and respond by purchasing it in advance, the demand for the complement good may be affected. The decrease in demand for the complement good is due to the substitution effect. Consumers may choose to delay their purchases or reduce their consumption of the complement good as they prioritize purchasing the primary good before its price increases. As a result, the quantity demanded for the complement good decreases in the short term.
It's important to note that the impact on prices and quantities will depend on various factors, such as the elasticity of demand for the goods, the availability of substitutes, and the time horizon considered. Economic conditions and consumer behavior can also influence the extent of these effects.
To learn more about Consumers click here:
brainly.com/question/15307787
#SPJ11
the capacity focus concept can be put into practice through a mechanism called which of the following?multiple choiceplant within a plant (pwp)total quality management (tqm)capacity utilization rate (cur)zero changeover time (zxt)best operating level (bol)
The correct option ' the capacity focus concept can be put into practice through a mechanism called' a. plant within a plant (pwp).
Plant Within a Plant (PWP) is a mechanism that can be used to implement the capacity focus concept. It involves creating a smaller production unit within a larger manufacturing facility with a specific focus on a particular product or process. This smaller unit is self-contained and operates independently, with its own resources, staff, and equipment. The PWP can be designed to meet the specific needs of a particular product or process, which can result in increased efficiency, reduced lead times, and improved quality. By creating a smaller unit, the company can focus its resources and expertise on specific products or processes, which can lead to improved productivity and profitability. PWP is a useful mechanism for companies that have a diverse range of products or processes, as it allows them to allocate resources more efficiently and effectively.
The complete question is
The capacity focus concept can be put into practice through a mechanism called which of the following? a. Plant within a plant (PWP) b. Total quality management (TQM) c. Capacity utilization rate (CUR) d. Zero-changeover-time (ZXT) e. Best operating level (BOL)
To know more about capacity focus here
https://brainly.com/question/32482392
#SPJ4
You are working on the BB audit and have been asked to help your manager understand What is Blockchain?, What are the challenges associated with auditing their use of Blockchain technology. Without having a detailed understanding of how BB uses Blockchain: A. Educate your manager on the general issues and challenges for auditors with Blockchain technology. (20 marks) в. Show how audit and assurance might evolve with Blockchain
A. General issues and challenges for auditors with Block chain technology Block chain technology is the digital and decentralized ledger that is used for storing and exchanging cryptocurrencies such as Bitcoin and Ethereum. It provides an immutable and transparent record of transactions.
Blockchain technology presents several challenges for auditors. The following are some of the issues and challenges faced by auditors when auditing blockchain technology:Security and control - Blockchain technology has a high level of encryption, which means that the data is difficult to access. This presents a challenge for auditors, who need to access the data to perform their audit procedures.Data quality - Since blockchain technology is decentralized, it is difficult to ensure the quality of data in the blockchain.
This presents a challenge for auditors, who need to rely on accurate data to perform their audit procedures.Legal and regulatory compliance - Blockchain technology is not yet fully regulated in most countries. This presents a challenge for auditors, who need to ensure that the use of blockchain technology is compliant with legal and regulatory requirements.B. How audit and assurance might evolve with BlockchainWith the emergence of blockchain technology, audit and assurance services are likely to evolve in several ways:Automation - The use of blockchain technology is likely to automate many of the audit and assurance procedures. This will improve the efficiency of the audit process and reduce the time and cost associated with audits.
To know more about technology visit;
https://brainly.com/question/17302715
#SPJ11
a corporate officer purchased land with the aid of a loan at a favorable interest rate from the corporation. the officer granted the corporation a mortgage as security for the loan, and the corporation promptly recorded the mortgage instrument. the officer also signed a note promising to repay the loan over a period of 10 years. the note contained a due-on-sale clause that required, at the corporation's option, payment of the full outstanding amount of the loan if the officer sold the land without first obtaining the corporation's written consent. after making timely payments on the loan for three years, the officer sold the land to a buyer who was unrelated to the officer without obtaining the corporation's consent. the deed given by the officer acknowledged that the land was being transferred subject to the mortgage. after payment of the purchase price to the officer, the buyer promptly recorded his deed. subsequently, neither the officer nor the buyer made any payments on the loan to the corporation. the corporation, in order to avoid lengthy foreclosure procedures, has sued the buyer for the full outstanding amount of the loan obligation. is the buyer liable for the full outstanding amount of the loan?
Based on the information provided, it is likely that the buyer is not liable for the full outstanding amount of the loan.
The buyer purchased the land subject to the mortgage, which means they assumed the existing mortgage as a part of the purchase. However, the buyer did not sign a note promising to repay the loan, and therefore does not have a direct contractual obligation to the corporation.
The officer, who initially took out the loan, is the one who signed the note and is responsible for repayment. The corporation can pursue legal action against the officer to recover the outstanding loan amount, but it is unlikely that the buyer would be held liable for the officer's debt. It is recommended to consult with a legal professional for specific advice regarding this situation.
to know more about interest rate visit:
https://brainly.com/question/19756730
#SPJ11
b) country markets has an unlevered cost of capital of 12 percent, a tax rate of 38 percent, and expected earnings before interest and taxes of $15,700. the company has $12,000 in bonds outstanding that have a issued by the ci, mgmt3048 on june 11, 2023 3 6 percent coupon and pay interest annually. the bonds are selling at par value. what is the cost of equity? (4 marks)
The cost of equity for the company is approximately 8.16%.
To calculate the cost of equity, we need to use the formula for the weighted average cost of capital (WACC). The WACC is the average rate of return a company must earn on its investments to satisfy its shareholders and creditors.
The formula for WACC is:
WACC = (E/V) * Ke + (D/V) * Kd * (1 - Tax Rate)
Where:
E/V = Proportion of equity in the company's capital structure
Ke = Cost of equity
D/V = Proportion of debt in the company's capital structure
Kd = Cost of debt
Tax Rate = Corporate tax rate
In this case, since the company has bonds outstanding, the debt portion of the capital structure will be represented by the market value of the bonds.
Given information:
Unlevered cost of capital (Ku) = 12%
Tax rate = 38%
Earnings before interest and taxes (EBIT) = $15,700
Bonds outstanding (debt) = $12,000
Coupon rate on bonds = 6%
Bonds are selling at par value
First, we need to find the market value of the equity (E) and the market value of the debt (D):
Market value of equity (E) = EBIT * (1 - Tax Rate) / Ku
= $15,700 * (1 - 0.38) / 0.12
= $9,622.37
Market value of debt (D) = $12,000 (since the bonds are selling at par value)
Next, we calculate the weights of equity (E/V) and debt (D/V):
E/V = E / (E + D)
= $9,622.37 / ($9,622.37 + $12,000)
= 0.4451
D/V = D / (E + D)
= $12,000 / ($9,622.37 + $12,000)
= 0.5549
Now, we can rearrange the WACC formula to solve for Ke (cost of equity):
Ke = (WACC - (D/V) * Kd * (1 - Tax Rate)) / (E/V)
= (Ku * (E/V)) / (1 - (D/V) * (1 - Tax Rate))
= (0.12 * 0.4451) / (1 - (0.5549 * (1 - 0.38)))
= 0.0535 / (1 - (0.5549 * 0.62))
= 0.0535 / (1 - 0.3443)
= 0.0535 / 0.6557
≈ 0.0816 or 8.16%
Therefore, the cost of equity for the company is approximately 8.16%.
For more details about cost of equity
https://brainly.com/question/14041475
#SPJ4
According to Elton Mayo, right statement is: b. c. d. 24. Why do the people prefer to learn new languages or winning awards according to the Maslow? To satisfy their hunger To satisfy their belonging needs To self-actualize a. b. C. Social factors between workers can be avoided Showing special interest to a worker by his/her manager may increase the performance Informal organization does not affect the productivity There is no such a thing as work-group norms The workplace is not a social system. d. e. To find a love To satisfy the esteem needs
The correct statement according to Elton Mayo is that showing special interest in a worker by their manager may increase the performance. Maslow believed that people learn new languages or win awards to satisfy their esteem needs.
Elton Mayo, an Australian social psychologist, conducted the Hawthorne studies, a landmark study in industrial sociology, which found that the physical work environment was less significant in shaping workers' behaviors and productivity than the social environment. According to Elton Mayo, showing special interest in a worker by their manager may increase the performance.
Maslow's hierarchy of needs is a motivational theory in psychology. Abraham Maslow, an American psychologist, created this theory. He believed that human beings have five different levels of needs: physiological, safety, love/belonging, esteem, and self-actualization. He stated that people learn new languages or win awards to satisfy their esteem needs.
To know more about psychologist visit:
https://brainly.com/question/27579365
#SPJ11
Stock A has an expected return of 16.58% and a beta of 2.39. Stock B has an expected return of 11.81% and beta of 1.06. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?
The assumption of equal reward-to-risk ratios is not valid in this case. we cannot directly determine the risk-free rate based on the given information.
To find the risk-free rate, we can use the concept of the capital asset pricing model (CAPM). The CAPM equation relates the expected return of a stock to its beta and the risk-free rate. The equation is as follows:
Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Let's assume the market return is denoted as "Market Return."
For Stock A:
Expected Return for Stock A = 16.58%
Beta for Stock A = 2.39
For Stock B:
Expected Return for Stock B = 11.81%
Beta for Stock B = 1.06
Both stocks have the same reward-to-risk ratio, which
that their expected return is proportional to their beta. Therefore, we can set up the following equation:
Expected Return for Stock A / Beta for Stock A = Expected Return for Stock B / Beta for Stock B
(16.58% / 2.39) = (11.81% / 1.06)
Simplifying the equation:
6.93% = 11.13%
Since the equation is not balanced, we can conclude that the assumption of equal reward-to-risk ratios is not valid in this case. Therefore, we cannot directly determine the risk-free rate based on the given information.
Learn more about reward-to-risk ratios here
https://brainly.com/question/29845611
#SPJ11
which expression captures the concept of aggregate demand, or aggregate expenditure in the circular flow model? savings taxes imports wages rent profit consumption investment government spending net exports savings
The expression that captures the concept of aggregate demand or aggregate expenditure in the circular flow model is "consumption + investment + government spending + net exports."
Aggregate demand or aggregate expenditure in the circular flow model represents the total spending on goods and services within an economy. It is composed of several components. Consumption refers to the spending by households on consumer goods and services.
Investment represents the spending by businesses on capital goods and machinery. Government spending includes expenditures by the government on public goods and services. Net exports account for the difference between exports and imports.
By summing up these components, we get the total spending or demand for goods and services in an economy. Aggregate demand is an important indicator of economic activity and is influenced by factors such as consumer confidence, business investment, government policies, and global trade.
To know more about aggregate demand:
https://brainly.com/question/32462329
#SPJ4
Let's say that the economy consists of 100 people. Each person is to divide 1 unit of time between work and leisure given the wage rate w (paid on the labor market). Each person also receives dividends of T. The final total profit of this firm is n. The person's utility function depends on consumption c and leisure I and it is assumed to satisfy u(c, l) = 0 ln(c) + (1 - 0) ln(l), where 0 € (0, 1). On the flip side of the market, there are firms who hire workers and produce output. The representative firm operates with a Cobb-Douglas production technology Y = 2K ¹N ², Z = total factory productivity K = fixed amount of capital. Each of these firm's employees receive a wage of w (total labor cost of the firm is equal to wN). The profit is then given back equally to the shareholder as dividend income. G=0 0=3,2=1, K = 1600. Let's say initially 1. Write the equation that will show relation between each person's dividend income and firms total profit П. 2. Write the consumers budge constraint and maximization problem. Plot these 3. Write down the maximization problem of the firm. 4. Write down the government budget constraint. 5. Find the equilibrium price w, allocations c, N
The equation T = П / 100 relates each person's dividend income (T) to the firm's total profit (П), distributing profit equally among the 100 individuals.
The consumer's budget constraint, c + w - T = 1, constrains consumption (c), wage income (w), and dividend income (T), while the maximization problem aims to optimize utility subject to the budget constraint. Firm maximization problem and equilibrium price w are not provided.
The equation T = П / 100 represents the relationship between each person's dividend income (T) and the firm's total profit (П). Since there are 100 people in the economy, the total profit is divided equally among them, resulting in each person's dividend income being equal to the total profit divided by 100.
The consumer's budget constraint, c + w - T = 1, defines the limitations on the individual's consumption (c), wage income (w), and dividend income (T). It states that the sum of consumption, wage income, and dividend income should equal 1 unit of time available to each individual, indicating that all income must be allocated between consumption, leisure, and other expenses.
The consumer's maximization problem involves maximizing the utility function u(c, l) = 0 ln(c) + (1 - 0) ln(l), where c represents consumption and l represents leisure. The objective is to find the combination of consumption and leisure that maximizes the individual's utility, subject to the budget constraint. By solving this problem, the optimal levels of consumption and leisure can be determined.
The information provided does not include the maximization problem of the firm, which would involve determining the optimal combination of inputs (capital and labor) to maximize output or profit based on the Cobb-Douglas production technology given.
Learn more about consumer optimization here: brainly.com/question/33446531
#SPJ11
Rules of thumb are much like common sense in the sense that they're not common. A more accurate term for rules of thumb as applied to risk assessment is: a. cognitive heuristics b. hazard analysis c. power of emotion d. personal philosophy Clear my choice
The more accurate term for rules of thumb in risk assessment is "cognitive heuristics" (option a), as it captures the psychological processes involved in using simplified guidelines for decision-making.
A more accurate term for "rules of thumb" as applied to risk assessment is "cognitive heuristics." Cognitive heuristics are mental shortcuts or strategies that individuals use to simplify decision-making processes. They are often based on previous experiences, intuition, or generalizations, rather than thorough analysis or data. Rules of thumb can be considered a type of cognitive heuristic as they provide quick and simplified guidelines for assessing and managing risks.
While rules of thumb can be useful in certain situations, they can also introduce biases and errors in risk assessment. Relying solely on rules of thumb may overlook important factors or lead to flawed judgments. It is important to recognize the limitations of cognitive heuristics and complement them with more rigorous risk analysis techniques, such as hazard analysis or data-driven approaches.
Therefore, the more accurate term for rules of thumb in risk assessment is "cognitive heuristics" (option a), as it captures the psychological processes involved in using simplified guidelines for decision-making.
Learn more about Cognitive heuristics here:
https://brainly.com/question/29545194
#SPJ11
Which of the following statements is TRUE? A. Statistical discrimination cannot persist in the long run because firms are not maximizing profits. B. Increased wage inequality over time in the United States has occurred because wages for low earners have been falling while wages for high earners have remained constant. C. Recent technological advancements tend to be complementary with skilled workers and substitutable with unskilled workers. D. If men earn more than women with the same level of education, employers must be engaging in taste-based discrimination. Scenario: The following excerpt is from "Throwing the Book at Apple" (Wall Street Journal, Review and Outlook, June 12, 2013): At the time, prior to the existence of the tablet device market that Jobs created with the iPad, Apple did not sell e-books. Amazon sold nine of every 10. Justice claims Jobs then forced Amazon and every other e-book distributor to adopt a new e-book pricing model that harmed consumers. Yet the average retail price for "trade" e-books has since dropped to $7.34 from $7.97, and Amazon's Kindle is still the industry leader with Apple trailing in third. Over the same period readers bought 447% more e-books, and they can choose from dozens of tablets for titles and other media content. Is Apple Inc. a monopolist in the e-book market? A. Yes, because it is the only seller of e-books without actual or potential competitors. B. No, because it is not the only seller of e-books without actual or potential competitors. C. Yes, because it has the power to affect the prices of e-books. D. No, because it does not have the power to affect the prices of e-books. When price discrimination does not increase output, it increases a monopoly's profits because it A. shifts the demand curve the firm faces B. allows the firm to exploit economies of scale more fully C. increases the willingness of households to pay for a good D. allows the firm to capture some consumer surplus
The statement that is true is C. Recent technological advancements tend to be complementary with skilled workers and substitutable with unskilled workers.
The statement that is true is C. Recent technological advancements tend to be complementary with skilled workers and substitutable with unskilled workers. The correct option among all the options given in the question is option C which states that Recent technological advancements tend to be complementary with skilled workers and substitutable with unskilled workers.
age inequality in the United States has increased over time because wages for low-wage earners have fallen while wages for high-wage earners have remained relatively stable. This leads to option B being incorrect. Statistical discrimination can continue in the long run, and it is false to say that it can't. Firms may exercise this type of discrimination if they want to do so, and the only way to prevent it is through legal action.
Option A is incorrect because of this. In the e-book market, Apple Inc. can be considered a monopolist because it has the power to influence the pricing of e-books, making option C correct. Option D is incorrect because the power to influence e-book prices is in Apple's hands. Price discrimination does not increase a monopoly's output; instead, it increases its profits because it allows the company to capture some of the consumer surplus. Therefore, the correct answer to this question is option D. Allows the firm to capture some consumer surplus.
For more such questions on unskilled workers, click on:
https://brainly.com/question/29305641
#SPJ8
The demand for unicycles is D(p) = 16 – p/2, while the supply is S(p) = p. a.
a). What is the inverse demand for unicycles? What is the inverse supply?
b. At a quantity of 8, what is the marginal benefit and marginal cost?
c. At a price of 16, how many units are supplied and demanded?
d. What is the equilibrium price and quantity in the market?
a) The inverse demand function is p = 32 - 2Q, the inverse supply function is simply Q = p.
b) At a quantity of 8, the marginal benefit and marginal cost is 1.
c) At a price of 16, 8 units are supplied and demanded.
d) The equilibrium price in the market is 32/3 and the equilibrium quantity is 32/3.
a) The inverse demand function can be found by setting the demand equation equal to price (p) and solving for quantity (Q). Rearranging the demand equation, we have:
Q = 16 - p/2
Switching the roles of quantity and price, we get the inverse demand function:
p = 32 - 2Q
Similarly, the inverse supply function is found by setting the supply equation equal to price (p) and solving for quantity (Q). In this case, the inverse supply function is simply:
Q = p
b) To find the marginal benefit at a quantity of 8, we differentiate the inverse demand function with respect to quantity:
MB = d(p)/dQ = -2
The marginal benefit is constant at -2.
To find the marginal cost at a quantity of 8, we differentiate the inverse supply function with respect to quantity:
MC = d(p)/dQ = 1
The marginal cost is constant at 1.
c) At a price of 16, we can substitute this value into the inverse supply and demand functions to find the corresponding quantities supplied and demanded.
For supply:
Q = p = 16
For demand:
Q = 16 - p/2
Q = 16 - 16/2
Q = 16 - 8
Q = 8
So, at a price of 16, 8 units are supplied and demanded.
d) The equilibrium occurs when the quantity supplied equals the quantity demanded. Set the inverse supply and demand functions equal to each other:
p = 32 - 2Q
Q = p
By substituting the second equation into the first equation, we get:
Q = 32 - 2Q
3Q = 32
Q = 32/3
Substituting this value back into either the supply or demand equation, we can find the equilibrium price:
p = 32 - 2(32/3)
p = 32/3
To learn more about demand function click on,
https://brainly.com/question/28198225
#SPJ4
a) GDP captures all income created in the economy, GDP also captures all expenditures made in the economy’ is the statement true ir false? briefly explain. (b) "commercial banks make money by making money." briefly explain the ,eaning of this statement
Commercial banks are able to make money by lending out more money than they have on deposit, thanks to the fractional reserve system. The bank can also make money by charging fees and commissions for services such as overdrafts, ATM usage, and wire transfers. Commercial banks also invest in various financial instruments such as bonds, stocks, and other securities, which generate additional income for the banks.
a) The statement "GDP captures all income created in the economy, GDP also captures all expenditures made in the economy" is a true statement. GDP (Gross Domestic Product) is a measure of the value of all goods and services produced in a country in a given period of time, usually a year. It is calculated by adding up all the income generated in an economy and all the expenditures made in an economy. In other words, it takes into account the total income of all individuals and businesses in a country, as well as all the money spent by consumers, businesses, and the government.
b) "Commercial banks make money by making money" is a statement that refers to the way in which commercial banks operate. Commercial banks are financial institutions that accept deposits from individuals and businesses and use these funds to make loans to other individuals and businesses. The interest rate charged on these loans is higher than the interest rate paid on deposits, allowing banks to make a profit on the spread between the two rates.
To know more about Commercial banks, visit:
https://brainly.com/question/29880669
#SPJ11
