Answer:
They can be their own boss.
Answer:
Short range predictors:
c. Nominal interest rate differential
d. Psychological effects
e. Investor expectations
f. Bandwagon effect
Long range predictors:
a. Relative monetary growth
b. Relative inflation rates
Explanation:
Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.
Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.
Answer:
Option (D) is correct.
Explanation:
Given that,
Dividend, D0 = $0.90
Price, P0 = $27.50
Growth rate, g = 7.00% (constant)
D1 = D0 (1 + g)
= $0.90 × (1 + 0.07)
= $0.90 × 1.07
= $0.963
Cost of equity, Ke = [ D1 ÷ P0 ] + g
= [$0.963 ÷ $27.50 ] + 0.07
= 0.0350 + 0.07
= 0.1050 i.e 10.50 %
Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
<span>Now we have decided to change our market strategy to one which has taken the form of team management. We have best decided to change from one overall manager to smaller, self managed teams which we believe will be better for the company and the productivity of the team and show overall improvement. We hope that we will have your continued support on this matter.</span>
