The likely reason as to why the market will overproduce
goods that have external cost because of the fact that the producers experience
a lower cost compared to the society making the market produce an overproduction
of goods associated to external costs.
Answer:
d. Absenteeism significantly increases costs.
Explanation:
Correlation shows how a change in the value of one variable cause a change in the value of another variable either in the same direction or opposite direction. correlation coefficient is the numerical value of the degree of correlation. the Correlation coefficients can either be -1, 1,or 0
1.0 means a perfect positive correlation and when r = -1.0 indicates a perfect negative correlation. where correlation, is zero (0), it means there is no relationship between the variables being tested.
Since correlation in this question is 0.7 which is tending towards +1, it means there is a strong or significant correlation between absenteeism and increased costs
None of the above because none of these make sense to be the answer
Answer:
$2,445
Explanation:.
Calculation for the approximate market value of the firm
First step is to calculate the FCFE
FCFE = 205 - 22(1 - .35) + 25
FCFE=205-22(.65) + 25
FCFE=205-14.3+ 25
FCFE = 215.70
Second Step is to calculate the Market Value
Market Value = (215.70×1.02)/(.11 - .02)
Market Value=220.014/0.09
Market Value= $2,445
Therefore the approximate market value of the firm will be $2,445
