I think this would be a union grievance, sorry if i'm wrong.
Answer:
Pb R
atio:
For company A = 2.375
For company B = 1.5
Explanation:
As per the data given in the question,
ROPI = NDA (RNOA - WACC)
For Company A 100 × (21%-10%)
For Company B 100 × (14%-10%)
Present value of ROPI = (ROPI ÷ (1+WACC)) ÷ [1-(1+g) ÷ (1+WACC)]
For Company A = (11 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $137.50
For Company B = (4 ÷ (1+0.10)) ÷ [1-(1+0.02) ÷ (1+0.10)]
= $50
Market value of equity = NOA + present value of ROPI
= $100 + 137.50 = $237.50(Company A)
= $100 + $50 = $150(Company B)
Pb Ratio = Market value of equity ÷ Book value of equity
For company A = $237.50÷100 = 2.375
For company B = $150÷100 = 1.5
Answer:
C. 1.25
Explanation:
Mathematically;
Capacity utilization rate= actual output per hour / operating level rate per hour
Actually output per hour= 500units
Operating level rate per hour= 400
Hence,
Capacity utilization rate= 500/400
Capacity utilization rate= 1.25
Answer:
The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
Explanation:
Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.
Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.
Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price, should show up and offer their cheaper services.
Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.
Answer:
1. decreases
2. decrease
Explanation:
When Domestic interest rate increases, as a result of floating exchange rate, the net capital outflow decreases which in turn leads to most goods to be used internally, instead of exporting it abroad, there by reducing the level of exports.
Hence, All things being equal, it is assumed or believed that, In a short-run model of a large open economy with a floating exchange rate, net capital outflow DECREASES as the domestic interest rate increases and is just equal to the DECREASE in net exports.
