The risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.
<h3>What is a risk?</h3>
Risk can be defined as a possibility or a situation which is uncertain and involves exposure to danger. A risk from an investment perspective is the possibility of incurring losses due to market uncertainties.
When a company hire new employee, the company would expend some cost towards training of the newly recruited employee; which is termed financial risk.
Hence, the risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.
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Answer:
We should pay $46.50 for this stock.
Explanation:
The stock value is the present value of all the future dividends associated with the stock.
Following is the working to calculate the stock value.
Dividend
Year Dividend
_1 ____$1.20
_2 ___ $1.44
_3 ___ $1.73
_4 ___ $2.07
Use following formula to calculate the present value of all the dividends
Present value of Dividend = Dividend value x ( 1 + Expected interest rate )^numbers of years
Now calculate the present value of al the dividends
Year __Working ___________________________ Present values
_1 ____$1.20 x ( 1 + 6% )^-1 ____________________ $1.132
_2 ___ $1.44 x ( 1 + 6% )^-2 ____________________ $1.282
_3 ___ $1.73 x ( 1 + 6% )^-3 ____________________ $1.453
_4 ___ $2.07 x ( 1 + 6% )^-4____________________ $1.640
_5 to onward ___ [$2.07 / ( 6% - 2% )] x ( 1 + 6% )^-4 _ $40.991
Total _____________________________________$46.498
We should pay $46.50 for this stock.
Answer:
C. Market value of the inputs a firm uses in production.
Explanation:
Total cost is the summation of all cost incurred by a firm as a result of production. It is also market value of the inputs a firm uses in production.
Total cost refers to the summation of fixed cost, which is a cost that does not vary with the level of out put and variable cost, which varies with the level of output.
When producers manufacture goods, the total cost of production of such goods will be factored in the final price such that the producer is able to earn profit.
The government really just expected reduced highway fatalities. Even though that it costs these multibillion dollar companies a little more to let their drivers rest, it sill makes the roads safe for all drivers. Driving while tired is almost as bad as driving under the influence, so making sure that these truck drivers get sleep make sure everything is super safe for everyone.
Answer: Option A
Explanation: The control described in the case is <em>Price Ceilings. </em>Price ceiling is a method used by the government to control the price of certain commodities and to protect the consumer from overpricing of necessary goods.
Under price ceiling method, government fix the price of the commodity below the equilibrium price leading to demand exceeding supply which further results in shortage.
In the given case, shortage is clearly evident hence we can say the control is price ceiling.
