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3 years ago

8

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? p

hysical capital human capital labor entrepreneurship

1 answer:

Marta_Voda [28]3 years ago

6 0

Answer:

human

Explanation:

I took the test

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Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and

Bad White [126]

Answer:

BBC's free cash flow is $1,000,000.

Explanation:

Free cash flow is the cash a company generates from its business activities after deducting the cash flows from operations and capital assets. The free cash flow is given by the formula below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Net investment

The parameters are available in the question, what needs to be done is to input those numbers as follows:

Free cash flow = $2,500,000 x (1 - 40%) + $500,000 - $1,000,000

Applying the basic BODMAS rule, you have

Free cash flow = $1,500,000 + $500,000 - $1,000,000

Therefore, BBC's free cash flow is $1,000,000.

5 0

3 years ago

Carson’s Ribs, Inc. has hired you to calculate its WACC. • Debt: It currently issues 10-year bonds with an annual coupon of 5.5%

hoa [83]

Answer:

WACC =9.902%

Explanation:

Lets first understand what WACC is. WACC or weighted average cost of capital represents the total cost of financing. Now there are two main sources of long-term finance available to an entity, DEBT and EQUITY. Each source of finance has a different cost which highly depends upon the RISK PROFILE and RISK APPETITE of an entity. Some entities prefer debt financing over equity while some consider equity as more reliable source of finance.

When an entity takes finance from each source, it finds itself with a pool of funds which are then allocated based on priorities. WACC is the cost of the 'POOL OF FUNDS' (i.e an average cost of both debt and equity).

The formula of WACC is as follows:

WACC= ke×(E/V) + kd×(d/V)

ke= cost of equity

E= market value of equity

V= combined value of debt and equity

kd= cost of debt

So in order to find WACC we need to first calculate Ke and Kd.

Cost of equity can be calculated using the formula mentioned below.

ke= {d(1+g) ÷ p×(1-0.05)} + g

ke= cost of equity

d= dividend per share

g= growth rate

p= market price per share

ke= {$1(1.1) ÷ $45×( 1-0.05)} + 0.1

ke= 12.5%

Cost of Debt can be calculated using the formula below.

kd= i×(1-t)÷p

i= interest (5.5%×%1000=$55)

t= tax

p= market value of debt

kd= $55×(1-0.25)÷1075

kd= 3.84%

NOTE: (SINCE WE DON'T HAVE ENOUGH INFORMATION IN ORDER TO CALCULATE TOTAL MARKET VALUES OF DEBT AND EQUITY, WE CAN USE THE TARGET CAPITAL STRUCTURE TO COMPUTE WACC)

WACC = (12.5%×70÷100) + (3.84%×30÷100)

WACC= 8.75%+ 1.152%

WACC =9.902%

5 0

4 years ago

Enterprise Rent-A-Car was able to model and better understand how service requests were handled and then optimize the process, g

Roman55 [17]

<u>Answer:</u> Business process management

<u>Explanation:</u>

Business process management(BPM) is the tool through which the firm does its designing, modeling, executing, monitoring and optimization of their operations. all the activities are designed to achieve the organisational goals.

Through using the BPM tool Enterprise Rent A car was able to improve its efficiency in performance and productivity. When efficiency is achieved through optimization the customer satisfaction can also be achieved. With betterment in process the capability of the firm to provide deliverable also increases. BPM helps organizational leaders to know the various processes that happen within their organizations.

4 0

4 years ago

If in addition to having a high market share in the freight-forwarding industry, your company has strong technical know-how and

Ksivusya [100]

The most negative classification which the freight forwarding could receive is:

Average Business

<h3>What is Negative Classification?</h3>

This refers to the use of models to find out the predicted outcome which is in the negative class.

With this in mind, we can see that because in the high market share, there is the presence of strong technical know how and can produce high-quality products at low cost, then the most negative classification which the freight forwarding could receive is average business.

Read more about negative classification here:
brainly.com/question/13734308

5 0

2 years ago

Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, you are c

podryga [215]

Answer and Explanation:

(A) E(P) = (0.6) × ($2800) + (0.4) × ($2250)

= $1680+$900

= $2,580

E(S) = (0.6) × (1.40)+(0.4) × (1.5)

= 0.84 + 0.60

= $1.44

Var(S) = (0.6)(1.40 - 1.44)² + (.4)(1.50 - 1.44)²

= .00096+.00144

= 0.0024.

Cov(P,S) = (0.6)(2800-2580)(1.4-1.44) + (0.4)(2250-2580)(1.5-1.44)

= -5.28-7.92

= -13.20

b = Cov(P,S)/Var(S)

= -13.20/.0024

= -£5,500.

there is a negative exposure. as the pound gets stronger/weaker against the dollar the dollar value of british holding goes higher.

(B) b²Var(S) = (-5500)²(.0024) = 72,600($)²

(C). i would Buy 5,500 forward to hedge exchange risk exposure. By doing this, i can eliminate the volatility of the dollar value of your British asset that is due to the volatility of the exchange rate

4 0

4 years ago