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Reil [10]
3 years ago
15

Is it ethical for one company to receive funds to move into an area when other companies struggle to keep jobs from going offsho

re or from being lost to automation?
Business
1 answer:
qaws [65]3 years ago
7 0

Answer:

Is ethical just if the funds are private and not public.

Explanation:

Considering a liberal point of view is ethical. Firms compete with each other for a portion of the market, and this is reached just if the firms are capable of offering a good service or product. Quality and price are the most common variables took into account by consumers.

Is visible that, if  firms are struggling with technological constraints or the maintenance of jobs is because has no competitive advantage and it's not offering a good product or service to society. If in that process a new firm adapts to the context and looks for private investment, in order to satisfy higher expectactions of the market, then, the final result is ethic, because elevates the welfare level of the entire society.

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A firm's current profits are $400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. I
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A. $21,200,000

B. $20,800,000

Explanation:

A. Calculation to determine The instant before it pays out current profits as dividends

Value of the firm =[(Current profits) × (1 +Opportunity cost of funds)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.06)]÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.06)]÷0.02

Value of the firm= $424,000 ÷ 0.02

Value of the firm= $21,200,000

Therefore The instant before it pays out current profits as dividends will be $21,200,000

B. Calculation to determine The instant after it pays out current profits as dividends

Using this formula

Value of the firm =[(Current profits) × (1 +Constant growth annual rate)} ÷ (Opportunity cost of funds - Constant growth annual rate)

Let plug in the formula

Value of the firm= [($400,000) × (1 + 0.04)] ÷ (0.06 - 0.04)

Value of the firm= [($400,000) × (1.04)] ÷ (0.06 - 0.04)

Value of the firm= $416,000 ÷ 0.02

Value of the firm= $20,800,000

Therefore The instant after it pays out current profits as dividends will be $20,800,000

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3 years ago
Which is not an intensity level of distribution?
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