Answer: Some employers and workers will agree on a wage less than $20 and not report the wages to the government; black market
Explanation: When the minimum wage is set above the equilibrium wage it leads to a surplus of labor in the market. There are more job seekers than the firms demand at the minimum wage of $20. Thus, the only possible option will be that some employers and workers will agree on a wage less than $20 and not report the wages to the government. When this happens it leads to black marketing. Black market is an underground economy the transactions of which are not reported to the government.
Answer:
b
Explanation:
i dont really know,can someone explain to mee
Answer:
$375
Explanation:
A stock you own earned: $200, $500, $100, and $700 over the last four years.
We need to find the annual gain in value over the four years. We know that,
Mean = sum of observations/total no. of observations
Put all the values,
So, the required mean annual gain is equal to $375.
Answer and Explanation:
a. The pension worksheet for the pension plan for the year 2014 and 2015 is presented on the excel spreadsheet
b. According to the scenario, The journal entry is
Journal Entry:-
Pension expenses A/c Dr. $450,640
Other comprehensive income (gain/loss) A/c Dr. $99,360
Other comprehensive income (prior service cost) A/c Dr. $410,000
To pension assets & liabilities A/c $675,000
To Cash A/c $285,000
(Being the pension expense is recorded)
For recording this we debited the pension expense, other income, gain or loss as it increased the expenses reduced the income and credited the cash and assets and liabilities because it reduced the cash and recognize the pension assets and liabilities
Answer:
The stock A is most valuable as the fair value of Stock A is $100 which is more than the fair value of Stock B ( $83.33) and Stock C ($34.28).
Explanation:
to calculate the fair price of the stocks, we will use the DDM or dividend discount model. The DDM bases the value of a stock on the present value of the expected future dividends from the stock.
Let r be the discount rate which is 10%.
a.
The stock is like a perpetuity as it pays a constant dividend after equal intervals of time and for an indefinite period.
The price of this stock can be calculated as,
Price or P0 = Dividend / r
P0 = 10 / 0.1 = $100
b.
The constant growth model of DDM can be used to calculate the price of this stock as its dividends are growing at a constant rate forever.
P0 = D1 / r - g
Where,
- D1 is the dividend for the next period
- r is the cost of equity or discount rate
- g is the growth rate in dividends
P0 = 5 / (0.1 - 0.04)
P0 = $83.33
c.
The price of this stock can be calculated using the present of dividends.
P0 = 5 / (1+0.1) + 5 * (1+0.2) / (1+0.1)^2 + 5 * (1+0.2)^2 / (1+0.1)^3 +
5 * (1+0.2)^3 / (1+0.1)^4 + 5 * (1+0.2)^4 / (1+0.1)^5 + 5 * (1+0.2)^5 / (1+0.1)^6
P0 = $34.28
