Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
<span>Capital as a factor of
production is defined as the tangible products made by labor.
</span>Land as a factor of
production means not just the surface of the earth, but everything in the
universe that wasn't created by people. This includes all natural resources,
such as air, water, plants, sunlight, rocks, and minerals.
Examples:
1) Clothes ( because you have to be clothed)
2) Milk ( you immediately want to consume it)
3) Wine ( grapes go in wine comes out)
You don't need to use the parenthesis I just wanted to explain to help you understand.
The best way to handle situations like this is to be able to come to him and start striking a conversation that will eventually lead to business talks and start talking to him about the business that you're currently in. This will develop your relationship and talking about your business would be something that he could get interested in if you strike him a better conversation,
Answer:
Difference = 2.36% (Option e)
Explanation:
Formula:
WACC = Re*(E/V) + Rd*(D/V)*(1-t)
<u>Data (In Million) Book Value Market Value
</u>
E = Equity $65.00 $225.00 ($22.50 x 10)
D = Debt $45.00 $50.00
V = Value = E + D $110.00 $275.00
Re = Equity Rate 14% 14%
Rd = Debt Rate 6% 6%
T = Tax Rate 40% 40%
WACC Book Value:
WACC = 14%*(65/110) + 6%*(45/110)*(1-0.40)
WACC = 8.27273% + 1.47273%
WACC = 9.75%
WACC Market Value:
WACC = 14%*(225/275) + 6%*(50/275)*(1-0.40)
WACC = 11.45455% + 0.65455
%
WACC = 12.11%
Difference = 12.11% - 9.75 = 2.36% (Option e)
A Republican of which is a multiple person who elects
