In economics, the term productivity refers to:

According to a 2005 study of high school students in wisconsin, what is the primary motivator today for high school students' de

Solnce55 [7]

According to 2005 study of high school students in Wisconsin, the primary motivator today for high school students' decision to participate in community or service work is the edge it gives them during college admission. Students see community service as a mean of enhancing their eligibility for college admission, because it is one of the criteria that college admission committee consider during admission process.

6 0

3 years ago

Dr. Lum teaches part-time at two different community colleges, Hilltop College and Serra College. Dr. Lum can teach up to 5 clas

Scrat [10]

Answer:

2 classes at Hilltop, 3 classes at Serra; and $20,600

Explanation:

We can generate two equations from the problem

Equation 1: Dr. Lum can teach up to 5 classes per semester at both colleges. If 'h' represents the number of classes taken at Hilltop College, and 's', the number of classes taken at Serra College,

Equation 1 becomes: h + s = 5

Equation 2: Dr. Lum spends 3 hours per week preparing for Hilltop classes, and 4 hours for Serra classes, subject to a maximum of 18 hours per week.

Equation 2 becomes: 3h + 4s = 18

Now solving using substitution method,

We can derive an equation 3 from equation 1, as follows.

Equation 3: h = 5 - s.

Substituting equation 3 into equation 2, equation 2 becomes

3(5 - s) + 4s = 18

= 15 - 3s + 4s = 18

= 15 + s = 18

= s = 3.

With s = 3, using equation 3, h = 5 - 3 = 2.

Therefore, Dr. Lum should teach 2 classes at Hilltop, and 3 classes at Serra.

His income will be

$4,000 (2) + $4,200 (3)

= $20,600.

3 0

3 years ago

Assume that the labor market for barbers is competitive and that it is differentiated into two groups:

ehidna [41]

Answer and Explanation:

I will go through each and every option explaining the reasons and what option would be the best:

The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.

The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.

The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.

The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.

Hence the answer is D.

4 0

4 years ago

The sections of an insurance contract which limit coverage are called

Romashka [77]

The sections of an insurance contract which limit coverage are called insuring agreement. The insuring agreement will disclose all information needed to know is and what is not covered on the insurance contract. It is important to read the information carefully and know what you are agreeing to and what is being covered so that in the event you need to file a claim with your policy, you are covered.

4 0

3 years ago

Hellman Industries is estimating the weighted average cost of capital of its new project. The company plan to finance this new p

beks73 [17]

Question Completion:

a. Find the Pretax cost of Debt, cost of preference, and ordinary shares.

b. Calculate Hellman Pre- tax and after Tax WACC.

Answer:

Hellman Industries

a) Pretax cost of debt = Yield on bonds = 8.3%

b) Cost of Common equity

= 11.77%

c) Cost of preferred stock

= 10.53%

d) Pre-tax WACC

= 10.3%

e) After-tax WACC

= 8.93%

Explanation:

a) Data and Calculations:

Weight of Common stock = 50%

Weight of Preferred stock = 10%

Weight of Debts (Bonds) = 40% (100% - 50% - 10%)

Market return on common stock = 11.4%

Risk-free return (treasury bills yield) = 4%

Beta = 1.05

Average yield to maturity of Hellman semiannual coupon bonds = 8.3%

Market price of Preferred stock = £76 per share

Par value of Preferred stock = £100

Dividend rate of Preferred stock = 8%

Dividend per share = £8 (£100 * 8%)

Cost of Preferred stock = £8/£76 * 100 = 10.53%

Marginal tax rate = 40%

a) Pretax cost of debt = Yield on bonds = 8.3%

After-tax cost of debt = 8.3% (1 - 0.4) = 4.98%

b) Cost of Common equity, Re = Risk Free Rate + Beta x (Market Return - Risk Free Rate) = 4% + 1.05 x (11.4% - 4%)

= 4% + 1.05 * 7.4%

= 4% + 7.77%

= 11.77%

c) Cost of preferred stock = Dividend per share/Price * 100

= $8/$76 * 100

= 10.53%

d) Pre-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 8.3%

= 5.885 + 1.053 + 3.32

= 10.258

= 10.3%

e) After-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 4.98%

= 5.885 + 1.053 + 1.992

= 8.93%

8 0

3 years ago