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Svetradugi [14.3K]

4 years ago

11

A country has passed a law setting a minimum wage for factory workers 5% below the equilibrium price. How will this law impact t

he labor market?

1 answer:

kogti [31]4 years ago

6 0

This law will impact the labor market cause of low pay rate that will stop more people from applying for that job

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Simpson Corporation expects to sell the following number of units of their newest product: Year Unit Sales 1 8,000 2 9,000 3 12,

melomori [17]

Answer:

$27,000

Explanation:

Years Units Selling Sales NWC requirement Δ in Cash flows

sales price$ revenue$ 50,000 / 15% for NWC

0 - - - $50,000 $50,000

1 8000 180 1,440,000 $216,000 $166,000

2 9000 180 1,620,000 $243,000 $27,000

3 12000 180 2,160,000 $324,000 $81,000

4 15000 180 2,700,000 $405,000 $81,000

Note: Cashflow for NWC is derived by Cumulative difference in Cash flows for Present Year and previous year. Hence, the change in cash flow for the NWC balance at the end of year 2 is $27,000

3 0

3 years ago

David owns a footwear chain. His stores attract many customers because they sell various footwear brands. Thus, David has entere

Sergeu [11.5K]

Answer:

B. trademark franchise

Explanation:

-Business format franchise is when the franchisee gets a business with the name and trademark of the franchisor and has to follow the guidelines established, for example, a restaurant's franchise.

-Trademark franchise is when the franchisee gets the permission to distribute the product but uses its business format.

-Manufacturing franchise involves the permission to produce a product to sell it to the customer or retailers.

-Management franchise requires that the owner supervises the operations but he/she doesn't have to be in the daily activities. The franchisee should be someone with management experience to handle the business successfully.

According to this, the answer is that the franchise model that David's business follow is trademark franchise because he gets the manufacturers permission to sell their products on his own footwear chain.

4 0

3 years ago

As a consultant to CSUSM, you have obtained the following data (dollars in millions). The company plans to pay out all of its ea

ella [17]

Answer:

$6,694.56 million

Explanation:

EBIT = $800

corporate tax = 40%

the company's intrinsic value = FCF / (WACC - g)

since g = 0, then the intrinsic value = FCF / WACC

first we need to determine the free cash flow and then the WACC to determine the intrinsic value of the company:

FCF = $800 x (1 - 40%) = $480
WACC = (30% x 12%) + [70% x 8.5% x (1 - 40%)] = 3.6% + 3.57% = 7.17%

company's intrinsic value = $480 / 7.17% = $6,694.56

6 0

3 years ago

Compute the present value of a $100 investment made 6 months, 5 years, and 10 years from now at 4 percent interest. (lo1

nexus9112 [7]

$98.05 present value of invstment

<h3>What is present value?</h3>

In economics and finance, present value, also known as present discounted value, is the monetary value of an expected revenue stream as of the valuation date.

The current value of a future sum of money discounted by a rate of return is known as its present value. It informs you how much you need to invest today to earn a certain amount in the future. The difference between the present value of cash inflows and cash outflows over time is referred to as net present value.

The present value of the costs is the amount of money that the costs are worth today. The present value of costs considers a notion known as the time worth of money.

To know more about present value follow the link:

brainly.com/question/15904086

#SPJ4

3 0

2 years ago

Indicate how an increase in tastes for apples will affect the equilibrium price and the equilibrium quantity in the market for a

Rudiy27

Answer: Option (a) is correct.

Explanation:

Tastes and preferences are the determinants of demand. Any change in the tastes and preferences will lead to shift the demand curve of a market. Therefore, an increase in the tastes for apples means that demand is favorable for the apple market, as a result demand curve shifts rightwards.

Hence, both equilibrium price and equilibrium quantity in the market for apples increases.

6 0

3 years ago