If the two nations trade, the trade price of wheat in terms of steel will be "greater than the domestic opportunity cost of wheat in alpha and less than the domestic opportunity cost of wheat in beta".
Opportunity cost speaks to the advantages an individual, financial specialist or business misses out while picking one option over another. While financial reports don't demonstrate opportunity cost, entrepreneurs can utilize it to settle on wise choices when they have different choices available to them.
Answer:
Tunneling Inc.
Degree of operating leverage
= Contribution Margin divided by Operating Income
= $440,000/$290,000 = 1.52
Explanation:
(a) Data and Calculations:
Sales Revenue = $840,000 (10,000 x $84)
Variable cost = $400,000 (10,000 x $40)
Contribution = $440,000
Fixed costs = $100,000
Depreciation = $50,000
Operating Income = $290,000
Tax (21%) ($60,900)
Net Income = $229,100
(b) The degree of operating leverage for Tunneling Inc. is 1.52. It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings. Analysts usually work this ratio out to determine this important effect.
Answer:
a. 16.00%
b. $13.50
Explanation:
a. The computation of the required return is shown below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.5 × (12% - 4%)
= 4% + 1.5 × 8%
= 4% + 12
= 16.00%
b. Now the stock price is
= Current year dividend ÷ (Required rate of return - growth rate)
= ($1 × 1.08) ÷ (16% - 8%)
= 1.08 ÷ 8%
= $13.50
We simply applied the above formulas
Ecology is a systematic relationship of all living things with each other and their interaction with the environment that they live in. All living things in the world are connected with each other in terms of energy. So, it affects child development in ways of eating food from plants and animals. Moreover, the child could be molded by social interactions within the community.
