Answer:
The unlevered beta is 1.03
Explanation:
The formula for unlevered beta is given below:
Unlevered Beta (βA) = Equity Beta (βE)
/1 + (1 − t) × D/E
equity beta is 1.40
t is the tax rate at 35% or 0.35
D is the debt value given as 36% or 0.36
E is the equity value given as 64% or 0.64
Unlevered Beta (βA=1.40/(1+(1-0.35)*0.36/0.64
Unlevered Beta (βA)=1.40/1+(0.65)*0.36/0.64
Unlevered Beta (βA)=1.40/1+(0.65)*0.5625
Unlevered Beta (βA)=1.40/1+0.365625
Unlevered Beta (βA)=1.40/1.365625
=1.025171625 approx. 1.03
Answer:
b. understate the predetermined overhead rate
Explanation:
The rate is determinate by distributing the expected cost over the cost driver
In this case labor cost.
as this value is higher than it should
(labor + some indirect)
the result of the division will be lower thus, the overhead rate is lower than it should be without the mistake.
Answer:
2. a worker decides to quit one job to seek a different job.
Explanation:
Frictional unemployment occurs when workers are moving from one job to another. It happens when the available jobs and the workers' skills do not match. For example, a graduate from the university cannot find a job that matches the skills straight away. The period of searching for that first job is called frictional unemployment.
Frictional unemployment is naturally occurring in the economy. It is present when the economy is in full employment. It is present as workers are always searching for better opportunities elsewhere, and students are graduating and searching for their first employment.
Answer:
All firms get zero profit
Explanation:
Because
When patent expires, it causes free entry of new firms which increases market supply. The market supply curve shifts rightward which decreases price lower than P1. In new long run equilibrium, all firms earn zero economic profit
