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yarga [219]
3 years ago
14

Suppose a company makes an investment and opens another factory. In 1 or 2 sentences, explain how this investment directly creat

es jobs.
Business
2 answers:
marysya [2.9K]3 years ago
7 0
When a company makes an incestment by opening a new factory, they need employees for this factory. The company might transfer some employess from previous factories to be the managers, but then they need more employees to do the rest of the work. So they will place help wanted ads to get more employees. This will create more jobs for the unemployed and even for the employed who are looking for a better job.
Alex777 [14]3 years ago
3 0

When a firm makes investments to open a new manufacturing branch, new jobs will be opened and demanded. First, for managers, administrators who will plan the factory architecture. In a second moment, workers must be hired to produce the firm's manufactures. In addition, outsourced employees may be hired to provide cleaning, food, etc. Therefore, investing a company to open a new branch tends to require a good amount of manpower.

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Which economic player did John Maynard Keynes feel was capable of restarting the economy during the Great Depression?
777dan777 [17]
The economic player John Maynard Keynes felt that the government was capable of restarting the economy during the great depression.
   
so the answer is D. 




5 0
2 years ago
Firms U and L each have the same amount of assets, investor-supplied capital, and both have a return on investors' capital (ROIC
Tanya [424]

Answer:

The correct option is a.

Explanation:

In the question, it is given that there are two firms namely U and L who has same same amounts of assets, investor supplied material, and Return on investor capital.

The Firm U is unleveraged which has 100% equity

whereas,  Firm L is leveraged firm which has 50% debt and 50% equity

As we have to compare these two firms based on return on equity.

So, based on ROE, Firm U has 100% equity so it have more equity

And, the Firm L have 50% equity which means the firm has low equity as 50% contribution is gone to the debt.

The rest information which is given in the question is irrelevant. So, it is ignored.

Thus, the Firm L has a lower ROE than Firm U

Hence, the correct option is a.

4 0
2 years ago
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $50,000 or $150,000, with equal
kvv77 [185]

Answer:

A. $86,956.52

B. 15%

C.$83,333.33

Explanation:

a) Calculation for how much will you be willing to pay for the portfolio

First step is to calculate the required rate of return on the portfolio using this formula

The required rate of return on the portfolio= Risk Free Return+Risk Premium

Let plug in the formula

The required rate of return on the portfolio=5%+10%

The required rate of return on the portfolio=15%

Second step is to calculate the Expected value of the portfolio

Expected value of the portfolio= 0.5*50,000+0.5*150,000

Expected value of the portfolio =$100,000

Assuming x is the amount you will be willing to pay for the portfolio which means that:

x*(1+15%)=100,000 OR x= $86,956.52

Therefore You would be willing to pay $86,956.52 for the portfolio.

b) Calculation for What will the expected rate of return on the portfolio be

Expected return on the portfolio= (100,000-86,956.52)/86,956.52

Expected return on the portfolio=15%

Therefore the Expected return on the portfolio will be 15%

c) Calculation for What is the price you will be willing to pay now

In a situation where the risk premium is 15%, which means that the required rate of return will be

Required rate of return=5%+15%

Required rate of return=20%

Therefore the price you will be willing to pay= 100,000/(1+20%)

Price=$83,333.33

3 0
2 years ago
How does the federal reserve keep the value of money fairly constant?
Basile [38]
<span>The value of money is mainly tied to the inflation rate prevalent at that time. The federal reserve's job is to prevent disinflation and maintain inflation at a moderate rate (2-3%). They are able to accomplish this through monetary policies such as controlling the LIBOR rate which affects short term interest rates between banks, which in turn should affect short-term interest rates everywhere. They also accomplish this by buying and selling bonds in the open market to increase and decrease the money supply in order to spur the economy or slow down the economy.</span>
3 0
3 years ago
A rival good A. is exclusive. B. is one that rival firms are trying to obtain. C. cannot be shared. D. is one that is used up as
ANTONII [103]

Answer: Option (D) is correct.

Explanation:

A good is said to be rival in nature if the consumption of that good by one individual will impact the availability of good for the others. This means that less quantity will be available for the others.

For instance, if a city has only one fire station, two fire trucks and four firefighters then it is characterized as rival in consumption because consumption of fire protection by one individual will make the fire protection unavailable for the others, due to its limited availability.

Suppose if there is an emergency call received from about 15 houses then the fire protection have to choose 3 or 4 houses among them because of limited resources. This shows that fire protection is unavailable for others.

5 0
2 years ago
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