Answer: 1. real GDP declined.
Explanation:
If labor productivity fell yet the workforce did not increase, that means that for Years 1 and 2, workers were producing less than they were producing before because the same number of people were producing.
This means that the amount of goods produced in the country would reduce and therefore GDP would reduce as well as GDP is the amount of goods and services produced in a country. If labor productivity had fallen yet the work-hours had increased, the increase in worker hours would have made up for the loss of labor productivity.
Answer: <em>Option (B) is correct.</em>
Explanation:
If true, the following will most seriously weakens the argument: There has been an increasing rate in store opening in the central shopping district (CSD) since Colson's have opened discount stores.
Since after Colson's opened, the locations which were vacant became stores in particular discount store which did not spar with Colson's. Now that we have a discount store & department store without discount. Therefore when these stores close while competing with SpendLess, they wont be replaced with regular non-discount stores .
Answer:
(a) 7.5%
(b) 8.5%
(c) 9.5%
Explanation:
(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate
Lets foreign country inflation rate = X
X - 1.5 = 8 - 2
X - 1.5 = 6
X = 6 + 1.5
= 7.5%
(b)
Lets foreign country infllation rate = X
X - 1.5 = 9 - 2
X - 1.5 = 7
X = 7 + 1.5
= 8.5%
(c)
Lets foreign country inflation rate = X
X - 1.5 = 10 - 2
X - 1.5 = 8
X = 7 + 1.5
= 9.5%
Answer:
WACC = ke(E/V) + Kd(D/V)
WACC = 15(0.40) + 9(0.60)
WACC = 6 + 5.4
WACC = 11.4%
Explanation:
WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).
Calculation of equal amount to deposit each year to get the future amount:
It is given that a manufacturer of triaxial accelerometers wants to have $2,800,000 available 10 years from now. So we can say that Future value is $2,800,000. We are also given that the deposit rate is 6% per year.
In order to find out the equal amount to deposit each year we need to calculate the annuity using the future value of annuity formula as follows;
Annuity = Future value of annuity / FV of $1 annuity
FV of $1 annuity (at 6% rate for 10 years) is 13.18079
Hence,
Annuity =2,800,000 / 13.18079 = 212,430.36
Hence , equal amount to deposit each year is $212,430.36
