Answer:
3.80%
Explanation:
The computation of the cost of equity is shown below:
Cost of equity is
= Annual dividend paid × (1 + growth rate) ÷ Stock price + Growth rate
where,
Annual dividend paid is $0.49
Growth rate is 3.7%
And, the stock price is $17.2
Now placing these values to the above formula
So, the cost of equity is
= $0.49 × (1 + 0.037) ÷ $17.20 + 0.037
= 0.00105 + 0.037
= 3.80%
Answer:
Employees,Governments,Local communities,customer
The journal entries to record the direct write-off method and the allowance method are:
Journal entries
a. May 3
Debit Bad debt $2,000
Credit Account receivable- Joey Company $2,000
b. May 21
Debit Accounts Receivable—Joey Company $2,000
Credit Allowance for Doubtful Accounts $2,000
Debit Cash $2,000
Credit Accounts Receivable—Joey Company $2,000
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Answer:
Labor Demand and Supply
a) Equilibrium Wages = $25 and Equilibrium employment level = 2
b) $30 cannot be the market clearing wage. At $30 labor supply will outstrip labor demand. In that situation, there is no equilibrium of labor supply and demand.
c) If 5 workers are hired at a wage of $30, the wage bill will be equal to $150 ($30 * 5) and the 5 workers will be receiving an economic rent of $5 each ($30 - 25). The total economic rent is $25 ($5 * 5).
d) If workers earn economic rent, it does not mean that they are being overpaid. It simply means that they are being paid above the equilibrium wage.
e) The total wage will be $1,200($30 * 40). The total economic rent gained by the employed union members is $200 ($5 * 40). The economic rent lost by limitation on union labor cannot be quantified with the given information.
Explanation:
a) Data and Calculations:
Demand: LD = 100 − 2W
Supply: LS = 2W
Equilibrium wage and employment level exist where Demand = Supply
i.e. LD = LS = 100 - 2W = 2W
Therefore 2W = 100 - 2W
= 4W = 100
= W = 100/4
= W = 25
Equilibrium Wages = $25
Equilibrium employment level = 2
b) Economic rent is the additional or extra income which a resource earns or generates over the normal earnings as a result of being put to use in its present form. This means that the extra income could be lost without jeopardizing the deployment of the resource to some productive use.
Neoclassical economics focuses on providing more options while Behavioral economics focuses on helping people make better decisions with the options available.
A psychological approach to business, behavioral economics looks at how well people's expectations of utility and profit maximization match their actions and if they actually maximize predicted utility.
Contrarily, neoclassical economics views manufacturing costs as a key determinant of pricing a product. Thus, neoclassical economists contend that customers' primary determinant of choice is price.
Hence, the two have different beliefs about giving people options. While behavioral economics focuses on assisting people in making better decisions with the options at hand, neoclassical economics places greater emphasis on offering more options.
Want to know how would keynesian and neoclassical economics propose dealing with cyclical unemployment? Read here: brainly.com/question/28213854
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