I am figuring this question out for you! one moment please
Explanation:
Answer:
C) $6.25 million
Explanation:
Compensating wage differentials are paid to workers so that they accept tasks that are considered dangerous or hazardous.
A worker’s utility function is:
Utility = f (w, risk of injury)
Dahlia's safe job utility function = f(60000, 0.0002)
Dahlia's riskier job utility function = f(65000, 0.001)
A 400% increase in risk will increase Dahlia's salary by $5,000,
When you are using the compensation differential approach, you can determine the value of a life by dividing the compensating differential by the increased chance of death.
($65,000 - $60,000) / (1/1000 - 1/5,000) = $5,000 / 0.0008 = $6,250,000
Answer:
O administering compensation
Explanation:
The human resources department or the HR is the department responsible for employees' management in an organization. Employees are the human resources in the organization. The HR's main task is to attract, train, and retain the best employees for the company.
Other functions of the Human resources department include
- Recruiting and placing the right person for the right position.
- Managing the employee compensation scheme
- Ensure compliance with labor laws
- Training and building employee's capacity
- Creating and maintaining a good employer-employee relationship.
Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
C 5.500 (100 x 11%/2)
time 60 (30 years x 2 payment per year)
rate <em>0.052787474</em>
PV $99.4338
PV of the maturity
Maturity 100.00
time 60.00
rate <em>0.052787474</em>
PV 4.57
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity $4.5662 = $104.0000
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474 x 2 = 0.105574947
The cost of debt for the firm is 10.56%
Answer:
a. demand for existing shares of the stock and the price will both fall.
Explanation:
The stock price is formed by the interaction of supply and demand of companies's shares and when a news like this is released is expected that the future cashflows of that company will drop. Being share buyers rational actors, the demand for the company's shares will drop, therefore the price of the company will drop as well.
