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pshichka [43]
3 years ago
12

Consider the economies of Hermes and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that,

during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2036.
Year Hermes
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)
2016 11 30 3,000
2036 15 30 3,600
Year Gobbledigook
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)
2016 8 30 2,400
2036 12 30 3,600
Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a_______ amount than productivity in Gobbledigook. This illustrates the effect_______which makes it______for countries with low output to catch up to those with higher output.
Business
1 answer:
enyata [817]3 years ago
4 0

Answer:

Hermes

Productivity (Gobs per worker)

2016    100

2036    120

Gobbledigook

Productivity

(Gobs per worker)

2016    80

2036    120

Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a SMALLER  amount than productivity in Gobbledigook. This illustrates the effect OF CATCH UP which makes it POSSIBLE for countries with low output to catch up to those with higher output.

Explanation:

Hermes

Year Physical Capital Labor Force Output Productivity

(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)

2016    11    30      3,000  3,000/30=100

2036    15     30     3,600  3,600/30=120

Gobbledigook

Year Physical Capital Labor Force Output Productivity

(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)

2016   8   30   2,400 2,400/30=80

2036 12    30 3,600   3,600/30=120

Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a SMALLER  amount than productivity in Gobbledigook. This illustrates the effect of CATCH UP which makes it POSSIBLE for countries with low output to catch up to those with higher output.

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OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50 thousand bond
babymother [125]

Answer:

w_{d} = 0.3274 or, 32.74%

Explanation:

We know,

Capital Structure = Debt + Common Stock + Preferred stock

Given,

Common Stock = 4,000,000 shares

Share price = $21

Total common stock = No. of shares x share price

Total common stock = 4,000,000 shares × $21 = $84,000,000

Preferred Stock = 3,000,000 shares

Share price = $10

Total preferred stock = $10 x 3,000,000 shares

Total preferred stock = $30,000,000

Debt rate = 111% = 1.11

Debt = 50,000 bonds x $1000 par x 1.11

Debt = $55,500,000

Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)

Total capital structure = $169,500,000

The weight for debt in the computation of OMG's WACC

= \frac{Debt}{Total Capital Structure}

= \frac{55,500,000}{169,500,000}

= 0.3274

or, 32.74%

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3 years ago
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Answer:

The correct answer is letter "B": franchising.

Explanation:

A Franchise is a business where one person, the <em>franchisee</em>, gains access to the proprietary knowledge, processes, and trademarks of a <em>franchisor</em>. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.

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3 years ago
Windsor Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of
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Answer:

Answer for the question:

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is given in the attachment.

Explanation:

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Answer:

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Explanation:

To understand this question, you have to first understand what lump-sum taxes are.

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Hence, lump-sum taxes are often viewed as unfair because of the unfair advantage the rich have over the poor in tax-paying.

Hope this helped!

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