Christin the CEO of a national IT manufacture is experiencing the (B) bounded rationality
Explanation:
By analyzing the options given in the question we can say that
- An ethical dilemma is said to have occurred when there is a conflict of interest between the two organization leaving one with making choices between serving in the interest one the company or feathering one's nest.
- Group think implies giving preference to the decision of a group over individual's thinking
- The concept of Bounded rationality was introduced by Herbert Simon wit refers to the fact that making a rational decision is sometimes limited to the information at one's disposal as well as one's mental prowess.
So the answer to the above question is (B) bounded rationality-Christin is experiencing the dilemma of bounded rationality
Answer: C. 10 years
Explanation: A long-term goal will take many years. An example is saving up enough money to buy a house. This will take many years to achieve the goal.
The role of three question of economics is to act as the basic principle of production decision making. "What to produce", "How to produce", and "For whom it should be produced" are the three basic questions of economics. We have to consider the type of product, the method of producing it, and the consumer when making a production decision<span>.</span>
Answer:
The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
Explanation:
We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.
Using the CAPM we can calculate the required rate of return as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on Market
So,
r = 0.04 + 0.4 * (0.11 - 0.04)
r = 0.068 or 6.8%
As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.
The present value of a perpetuity is calculated as follows,
Present Value of perpetuity = Cash Flow / r
Present value of perpetuity = 10000 / 0.068
Present value of perpetuity = $147058.8235
So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places
