Answer:
3.5%
Explanation:
We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:
Cost of equity = Risk-free rate + Beta x Market risk premium
Putting all the number together, we have:
Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%
Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%
Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%
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<em>Note: You can also do quick calculation as below:</em>
<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>
Answer:
The Total manufacturing costs will increase while the unit manufacturing costs will decrease
Explanation:
The most likely behavior of the total manufacturing costs as well as the unit manufacturing costs is that the Total manufacturing costs will increase while the unit manufacturing costs will decrease because Atlas Manufacturing has the capacity to produce 50,000 valves annually which is per year in which it produces 40,000 valves and is about to increase the production to 45,000 valves the next coming year which will cause the manufacturing costs to increase and inturn cause the unit manufacturing costs to decrease.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The answer s "How to Produce it".
This is not one of the three basic economic questions.
Mostly what they usually asks is what to produce base on the needs of the consumers, where to produce it in where people really are needing it and who will consume what is produced, they may be rich people, etc.
Nonquantitative methods to forecast the future need for employees, usually based on the knowledge of a pool of experts in a subject or an industry, is called QUALITAIVE FORECASTING in human resource forecasting.
Explanation:
- Qualitative forecasting is an estimation methodology that uses expert judgment, rather than numerical analysis. This type of forecasting relies upon the knowledge of highly experienced employees and consultants to provide insights into future outcomes.
- It is a statistical technique to make predictions about the future which uses numerical measures and prior effects to predict future events. These techniques are based on models of mathematics and in nature are mostly objective. They are highly dependent on mathematical calculations.
- Qualitative forecasting is useful when there is ambiguous or inadequate data.
- Qualitative forecasting is most useful in situations where it is suspected that future results will depart markedly from results in prior periods, and which therefore cannot be predicted by quantitative means.
