Answer:
Option (d) is correct.
Explanation:
Given that,
Current wage rate of the workers = $8 per hour
Current year CPI = 160
Previous year CPI = 128
Inflation rate:
= (Current year CPI - Previous year CPI) ÷ Previous year CPI
= (160 - 128) ÷ 128
= 32 ÷ 128
= 0.25 or 25%
Therefore, the firm should increase the hourly wages of its workers by:
= Inflation rate × Current wage rate of the workers
= 25% × $8 per hour
= $2 per hour
Answer: $35.84
Explanation:
First year
10% compounded continuously is: 10.517%
$30 X 1.10517=$33.16, then take $2 for dividend and you get ($33.16-$2) $31.16 at the end of the 1st year.
Second year
10% compounded continuously is: 10.517%
$31.16 X 1.10517-2=$32.43 at the end of 2nd year.
(-2) is the dividend for the second year to be taken out.
Third year
10% compounded continuously is: 10.517%
$32.43 X 1.10517
=$35.84
Or:
The three year forward price is gotten by deducting the PV of the returns from the current price and then grossing up to get the returns for three years at the risk-free rate.
The present value of the income is 2e-0.1×1+2e-0.1×2= $3.447.
It is (30−3.447)e0.1×3 = $35.84
Answer: diffusion
Explanation:
Diffusion of innovation has to do with the spread of a particular innovation. We should note that the innovation was successful in Japan, and the Japanese accepted it.
The fact that it did well speaks to the diffusion of that innovation and the role that the Japanese partner played in addressing the specific cultural issues.