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solong [7]
4 years ago
15

Ryan is deciding between attending Western State University and Eastern State University. He cannot attend both universities sim

ultaneously. Both are fine​universities, but the reputation of Western is slightly​ higher, as is the tuition. Let MUE and MUW be​Ryan's marginal utilities from attending Eastern and Western State Universities respectively and PE and PW be the prices of attending Eastern and Western State Universities. Using the rule of consumer​optimum, Ryan will decide to
attend Eastern State​ University, if MUE/PE EXCEEDS MUW/PW

attend Eastern State University if MUE/PE is less than MUW/PW

attend Western State​ University, if PE/MUE< PW/MUW

attend Western State​ University, since it gives him more utility.
Business
1 answer:
Alenkasestr [34]4 years ago
7 0

Answer:

attend Eastern State​ University, if MUE/PE EXCEEDS MUW/PW

Explanation:

A rational individual will always choose the alternative that provides the highest marginal utility per dollar invested.

If MUE and MUW represent the marginal utilities, and PR and PW represent the prices, Ryan should attend the university that provides the highest utility per dollar, i.e. the highest MU and the lowest P.

He should attend Eastern State University if the MUE/PE (marginal utility per dollar of Eastern State University) is higher than MUW/PW (marginal utility per dollar of Western State University).

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Problem 16-12 Calculating WACC [LO1] Blitz Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of d
nignag [31]

Answer:

a) 13.18%

b) 9.06%

c-1) 14.55%

c.2) 11.805%

c.3) 9.06%

Explanation:

debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%

equity = 40%, Re = ?

WACC = 7.7%

7.7% = (40% x Re) + (60% x 4.05%)

7.7% = (40% x Re) + 2.43%

(40% x Re) = 5.27%

Re = 5.27% / 40% = 13.175 = 13.18%

13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)

13.18% = ReU + (ReU - 0.054) x 1.125

0.1318 = ReU + 1.125Reu - 0.06075

0.19255 = 2.125ReU

ReU = 0.19255 / 2.125 = 9.06%

ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75

ReL = 14.55%

ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75

ReL = 11.805%

6 0
4 years ago
In 2013, the Bureau of Labor Statistics (BLS) announced that of all adult Americans, 143,929,000 were employed, 11,460,000 were
xz_007 [3.2K]

Answer:

A

Explanation:

To calculate the adult population, we simply make use of the data available from the BLS.

We can simply make the calculations by adding the number of employed Adult Americans to the number of unemployed adult Americans.

We simply do not have any business with the number not in labor force because they are actually part of those that are employed but are not just in the labor force.

The adult population is thus:

143,929,000 + 11,460,000 =155,389,000

6 0
4 years ago
Target's liabilities exceed owners' equity.<br> a) true<br> b) false
Likurg_2 [28]

Answer: True

Explanation:

As of February 2020, Target Corp's total liabilities were listed to be $30,946,000,000 while its shareholder equity was significantly lower at $11,833,000,000.

Target Corp therefore does indeed have liabilities that exceed owners equity and by a substantial amount. This has also been the trend since at least 2015.

4 0
3 years ago
Sklar, CPA, purchased from Wiz Corp. two computers. Sklar discovered material defects in the computers 10 months after taking de
Nuetrik [128]

Answer:

<em>End up losing because it is legally binding the clause that would limit the statute of limitations to 18 months.</em>

Explanation:

Within UCC 2-725, in cases that involve the exchange of goods, a 4-year restriction law applies. The parties can reduce the duration to not less than 1 year (but not extend it).

When a delivery tender is made, an action for violation of warranty accrues (the statute begins to run).

However if the warranty specifically applies to future performance and violation disclosure must postpone that performance, the penalty will occur when the breach is discovered or should have been discovered.

5 0
3 years ago
Why might some firms voluntarily pay workers a wage above the market equilibrium
tekilochka [14]

Answer:

b) Paying higher wages can reduce a firm's training costs.

c) Paying higher wages encourages workers to be more productive.

d) Higher wages attract a more competent pool of workers.

Explanation:

Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal. The point at which the MRPL equals the prevailing wage rate is the labor market equilibrium.

The idea of the efficiency wage theory is that increasing wages can lead to increased labour productivity because workers feel more motivated to work with higher pay. Paying higher wages encourages workers to be more productive. Higher wages attract a more competent pool of workers. Workers stay with employers longer (instead of seeking out better-paying work with other companies) reducing businesses’ turnover, hiring, and training costs.

6 0
3 years ago
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