Answer:
Alternative 1 $27.7
Alternative 2 $30.25
Differential effects $2.55
Explanation:
Preparation of a differential analysis
DIFFERENTIAL ANALYSIS
Sell unfinished desks(Alternative 1 ) Process further into finished desks (Alternative 2) Differential effect (Alternative 2)
Revenue per desk $65.35 $74.50 $9.15
($74.50-$65.35=$9.15)
Cost per desk - $37.65 -$44.25 -$6.60
($37.65+$6.60=$44.25)
Profit /Loss per desk $27.7 $30.25 $2.55
($65.35 - $37.65=$27.7)
($74.50-$44.25=$30.25)
($9.15-$6.60=$2.55)
Therefore the company should process further and sell finished desks because it yields incremental Profit per desk.
Answer:
Required rate of return= 16%
Stock price= $13.50
Explanation:
A share of BAC common stock just made a dividend payment of $1
Market return is 12%
Beta is 1.5
Risk-free rate is 4%
Growth rate is 8%
The required rate of return for the stock can be calculated as follows
Required rate of return= Risk-free rate+beta×(market rate-risk-free rate)
= 4%+1.5(12%-4%)
= 4%+1.5×8%
= 4%+12
= 16%
The stock price can be calculated as follows
Stock price= dividend for the year/(rate of return-growth rate)
= (1×1.08)/(16/100-8/100)
= 1.08/0.16-0.08
= 1.08/0.08
= $13.50
Hence the required rate of return and the stock price is 16% and $13.50 respectively.
Answer:
Collectivist values are represented in the social framework of which of the following countries?
C. Brazil
Explanation:
There are different values in the social framework that different countries utilized in the development of various economic models, namely; individualistic and collectivist values. They are further explained below;
1. Collectivist value
These are values that promote group effort and work to achieve certain social and economic goals. The groups can be family groups or even work groups. A major aspect of collectivist is that they disregard personal achievement and desires. Collectivist values discourages competition and encourages empathy for other people. Collectivist value however,has it's disadvantages like; a lack of competition produces doesn't bring quality in terms of production and leadership skills. Examples of countries that have collectivist culture are; China, Korea, Japan, and Brazil. Brazil is a deeply collectivist culture since they expect loyalty between family members and groups.
2. Individualistic value
These are values that encourage personal effort, desires and achievements above group efforts. Individualistic values have the disadvantage of causing high competition that can at times lead to aggression and war, however, these value also have there advantages since most people are more independent and self-sufficient. Examples of countries that have individualistic values are; United States, Australia, and Great Britain.
Answer:
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
Explanation:
According to the New Growth Theory, it is both human desire and capital the factors that drive economic growth the most.
A literate population that does not read a lot means a lower level of human capital for Brazil, which in turn means that Brazil has a lower potential for economic growth. In order to increase economic growth, the Brazilian government should promote readership among its population.
