Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".
Explanation: If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.
As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.
Answer:
The correct answer is (b)permitted because the contract is just for music lessons.
Explanation:
Recall that,
Johann, a well known musician agrees to give out ten lessons of guitar to Elton for an amount of $ 2000. this contract forbids delegation.
Since Johann delegates his obligation to Eugene who is a second year student in music, then his delegation is only allowed because the contract is to take music lessons and nothing more.
Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
Answer:
Artistic Floral Creations has a entitlement philosophy of compensation.
Explanation:
A compensation philosophy is simply refers to a formal statement which documents a company's position about the compensation of its employees.
It is an explanation of the reason for employee payment and it creates a framework for consistency. Employers use their compensation philosophy to attract, retain and motivate employees
Entitlement philosophy of compensation therefore assumes that the employees who have worked for another year in a company are entitled to pay increases, regardless of their performance differences. This action is often geared towards a higher job performance, and job satisfaction.
Answer:
The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.
Explanation:
The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.
