Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
Answer:
In deciding how many hours to work, Beulah will make a choice that maximizes her utility; that is, she will choose according to her preferences for leisure time and income.
Explanation:
People obtain utility from products they purchase and they also obtain utility from leisure time (leisure time is the time not spent at work). Generally, for people with low wages react to a higher wage by supplying a greater quantity of labor but for higher wages people who can earn so much that respond to a still-higher wage by working fewer hours.
Answer:
$17
Explanation:
Calculation for that minimum price
Sales of port wine $32 per bottle
Less Variable costs ($15 per bottle)
Minimum price $17
($32-$15)
Therefore that minimum price is $17
I am a leader in a paper manufacturer. Some of the ways that my firm can interface with the natural environment in a win-win situation is to develop a good reforestation program. First, I will have my employees plant and take care of trees. Second, I will adapt a waste treatment that will allow my discharge to be fit for irrigation and my solid waste to be used as fertilizer.
