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Anastasy [175]
3 years ago
6

Sharron purchased a computer for $500 in 2018. Compared to the $900 computer that she purchased in 2011, the new one seems bette

r in terms of the price she has paid and the power of the microprocessor technology. This is best explained by
Business
1 answer:
Brilliant_brown [7]3 years ago
7 0

Answer:

This is best explained by Moore's law

Explanation:

Moore's law states that the transistor number in a given microchip doubles approximately every two years while the corresponding cost of the particular computer is halved. Moore suggested that the processing capability of the computers usually doubles every two years while at the same time the price reduces by half over the same period. This law was stipulated by Gordon Moore, who estimated that this scenario will continue for the foreseeable future.

This law can be applied in economics, especially if one deals in the electronics sector to determine forecast price estimates. Consider Sharron's case above;

If we apply Moore's law in Sharron's case, we note that the initial price of the computer in 2011 was $900. After seven years, the cost of the computer is $500. We can see that the cost of the computer has dropped by $400 almost half of its initial cost. At the same time, the power of the microprocessor technology has also improved. The microprocessor technology in 2018 is better than that of 2011.

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8. If the unemployment rate is below its natural rate, then ________. Group of answer choices output is above its potential leve
fgiga [73]

Answer:

Output is below its potential level.

4 0
3 years ago
Exxon has the following capital structure: the firm issued 6 million shares of common stock with the stock price in c), the firm
lesantik [10]

Answer: some data is missing but I was able to find it online and that helped me resolve the problem .

answer : WACC =  15.76%

Explanation:

Given that the common stock price = $9 ( as seen in option C not attached above )

value of common stock = $9 * 6 * 10^6 = $54,000,000

cost of common equity = 10.93%

current preferred stock price = $6

value of preferred stock = $6 * 1,500,000 = $9,000,000

hence the cost of the preferred equity = $4.5 / $6 = 0.75 = 75%

interest rate of debts = 6.5%

value of debit = $25,000,000

Corporate tax rate = 25%

∴ The cost of the debit after tax = 6.5% * ( 1 - 25)% = 4.88%

The Total value = value of common stock + value of preferred stock + value of debit

 = 54,000,000 + 9,000,000 + 25,000,00 = $88,000,000

<u>Finally the weighted average cost of capital ( WACC )</u>

[weight of debt * cost of debt after tax ] + [ weight of common equity * cost of common equity ] + [weight of preferred * cost of preferred ]

= [ (25/88) * 4.875 ] + [(54/88) * 10.933] + [ (9/88) * 75 ]

= 15.76%

3 0
2 years ago
A medical group practice is considering offering a new service with risk that is greater than the current risk of the business.
zlopas [31]
Stick to the regular risk and not the new one
4 0
2 years ago
When the price of summer tank tops falls and you buy more of them because they are relatively less expensive, this is calledA) t
svet-max [94.6K]

Answer:

The correct answer is A) the substitution effect

Explanation:

In other words, the substitution effect is when sales fall because the consumers change into cheaper alternatives when its price rises.

4 0
3 years ago
You are the director of marketing. Your department has been doing well, but the company as a whole has been losing revenue stead
garik1379 [7]

Answer:

I. Thank employees for being willing to make a sacrifice for the good of the company.

II. State the facts of the company's financial situation.

III. Inform employees that they will receive a 15% pay cut.

IV. Close with forward looking statement.

Explanation:

The company's financial situation has led the managers to decide for a pay cut instead of lay off to improve the financial position of the company and stay in the budget. The company should appraise employees that they understand the company's situation and are willing to accept the pay cut. The director should inform employees about the current financial situation and provide details about the pay cut plan. The email should close with a forward looking statement and a statement that as soon as the situation of company gets better the employees will receive full salaries as always.

7 0
2 years ago
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