Answer:
Required rate of return on clover's stock is 8.99%
Explanation:
The required rate of return on Clover's stock can be computed using Miller and Modgliani capital asset pricing model formula given below:
Ke=Rf+beta*(Rm-Rf)
Ke is the required rate of return, the unknown
Rf is the risk free rate of return of 4.00%
beta for Clover is 0.80
Rm is the not known as well but can computed using the Parr paper's details below:
beta is 1.442
required return IS 13%
13.00%=4.00%+1.442*(Rm-4.00%)
13%-4%=1.442*(Rm-4.00%)
9%=1.442*(Rm-4.00%)
9%/1.442=Rm-4%
6.24%
=Rm-4%
Rm=6.24%+4%
Rm=10.24%
Now the required return on Clover's stock can be computed
Ke=4%+0.8*(10.24%-4%)
Ke=8.99%
Answer: option B) comparative advantage.
Comparative advantage is the advantage that has an economical agent (country in this case) to produce at a lower cost than its competitors.
The above characteristics have been classified as belonging to the traditional or lean organizations as follows:
- Traditional - B. Maintain greater quantities of raw materials, work in process, and finished goods inventories.
- Traditional - C. Setup times are longer.
- Traditional - A. Manufacturing plants tend to be organized with self-contained production cells.
- Lean - E. Produce in smaller batches.
- Lean - F. Emphasis is placed on shortening manufacturing cycle times.
- Lean - D. High quality is stressed in every aspect of production.
<h3>Meaning of Lean and Traditional Organizations</h3>
A traditional organization is a business structure that has many workers and departments. They take time to set up and have a large inventory.
Lean businesses, on the other hand, produce in small batches and place emphasis on quality.
Learn more about lean and traditional organizations here:
brainly.com/question/4544412
Answer:
Management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles.
Explanation:
A lean business is a business concept used by organizations to eliminate waste and maximize value for growth and development. The lean business concept include the following;
I. A total quality management (TQM): it is a management framework that is focused on achieving long-term success through the satisfaction of your customers by the efforts of all the member of staff in an organization.
II. A continuous improvement (CI): it is a management technique that is focused on improving manufacturing processes, products and services through the elimination of redundancy and time-wasting activities in an organization.
III. Just-in-time (JIT): it is a management framework that is focused on cutting manufacturing costs and increase efficiency between suppliers and consumers through the use of a proper inventory system.
Additionally, lean production is a manufacturing methodology that is focused on integrating activities that are designed to provide massive quantity with high quality production using minimal resources, raw materials, finished products and work-in-process features.
This ultimately implies that, lean production is basically a supply management process aimed at elimination of waste as much as possible and it requires a mutual agreement between the management and employees, as well as proper training of the employees (workers) before implementing the conversion.
Hence, the statement which is correct about planning a successful conversion to Lean/Just-in-time operations is that both management and employees must be convinced of benefit and receive training prior to conversion to avoid obstacles.
Answer:
Invisible Hand Concept
Explanation:
Based on the information provided within the question it can be said that in this scenario Marco's experience is an example of the Invisible Hand Concept. This concept describes the social benefits of an individual's actions. Such is Marco's experience in since he created the business in order to solve a problem, which he managed to accomplish and by doing so helped older adults with their problem and created job opportunities for various other individuals.