Answer:
a. Breakeven point in number of rented rooms:
= Fixed costs / Contribution margin
Fixed cost = Salaries per month + Utilities + Depreciation + Maintenance
= 7,000 + 1,000 + 1,100 + 1,508
= $10,608
Contribution margin:
= Rent price - Maid service - Other costs
= 65 - 13 - 26
= $26
Breakeven point in rented rooms:
= 10,608 / 26
= 408 rooms
b. Breakeven point in dollars:
= Fixed costs / Contribution margin ratio
= 10,608 / (26 / 65)
= 10,608 / 40%
= $26,520
Answer:
a. 16.50%
Explanation:
Find the beta as of last year using CAPM;
CAPM ; r = risk free + beta(Market risk premium)
0.125 = 0.03 + beta(0.0475)
Subtract 0.03 from both sides;
0.125-0.03 = 0.0475beta
0.095 = 0.0475beta
Divide both sides by 0.0475;
0.095/0.0475 = beta
beta = 2
Next, use CAPM again to find the new required return with a market risk premium is 4.75%+ 2% = 6.75%
r = 0.03 + 2(0.0675)
r = 0.03 + 0.135
r = 0.165 or 16.5%
Therefore, the new required return is 16.5%
Answer:
The Archer Daniels Midland Company is an enormous conglomerate that grows and produces many food products. It is sometimes called the "supermarket to the world." The company has given large donations to politicians. If these donations affect policies regarding the environment or agricultural price supports, then these financial gifts are an example of rent seeking.
Explanation:
Rent seeking can be defined as an attempt of increasing profits without the contribution of productivity. In the corporate world, it involves the use of financial donations and bribes to politicians so that the politicians can manipulate the policies in their favor. It usually involves unjust favor to a business that has an interest in government-funded social services and programs. This concept was made popular in 1974 and generally meant the accumulation of wealth through shrewd means.
This concept was idealized by Adam Smith who defined rent as one of the sources of income. He stipulated that there are three major sources of income, namely; rent, wages and profit. He defined profit as the creation of more capital by risking capital. Wages were earned income, usually from employment. Rent is the utilization of resources to earn interest. Entities that have resources can sell, rent or lease to earn interest. Rent is usually the least riskiest way of earning income, thus it gained popularity tom mean receiving more benefits as compared to the associated costs.
In our case, Archer Daniels Midland Company utilizes it's access to capital to offer large donations to politicians with the aim of using the donations to manipulate policies regarding the environment or agricultural price supports in their favor.
I believe the answer is b.
In the area of threats to computer systems, electromechanical problems are examples of
errors and accidents.
Examples of these errors and accidents are phishing and sending our e-mails that people believe to be sent from a source they can trust when that is not the case. Both of these examples can harm the computer and the information they are able to retrieve from hacking can be threatening. They can also take over your computer by hacking it once you click any of the e-mails sent.
