When comparing Mexico to Scotland, you would expect Scottish workers to have greater productivity and higher labour cost per worker
Explanation:
One may expect that a Scotland plant will be less labour intensive and efficient per worker than just Mexican facilities as a more advanced technological nation and that "higher productivity and low labour cost" will be the right answer.
Both possibilities for lower productivity can be excluded as they demonstrate lower productivity. "Higher productivity, but less energy per job" is not the solution because it recognises lower labour costs per worker rather than higher.
The increase in labour productivity relies, according to certain studies, on three key factors: innovation and capital goods saving, modern technology and human capital.
It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
Answer:
Production= 15,000 units
Explanation:
Giving the following information:
Sales:
Q2=14,000
Q3=18,000
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units.
To calculate the production for the second quarter, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 14,000 + (18,000*0.25) - (14,000*0.25)
Production= 15,000 units
Answer:
a. 9,50%
b. $47.09
Explanation:
a) Discount rate on the stock
Average Risk Premium of Stock = 7.60%
Current risk-free rate = 1.60%
Discount Rate = 7.60% + 1.90%
Discount Rate = 9.50%
b) Current Price = ($41 + $2) / (1 + 9.50%)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / (1.0950)^1
Current Price = $43 / 0.91324
Current Price = $47.0851035872278
Current Price = $47.09
Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n
