The answer to the question above as to which is not a form of compensation is fixed working hours. Compensation can come to different forms and it includes bonuses, awards, promotion and higher opportunity to once career. Working on a fixed working hours is not a form of compensation because it is a standard form of employment. We can say that a Flexible working schedule or hour will be a compensation because it is a form of an advantage to the employee.
Answer:
The income effect and substitution effect work in opposite directions and income effect is dominant.
Explanation:
In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.
The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.
In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.
A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.
Answer:
Dividend yield is 4.79%
Cost of equity is 11.64%
Explanation:
The dividend yield on Krell Industries share price is the dividend of $1.09 divided by the price of the share today of $22.77
dividend yield=$1.09/$22.77=4.79%
The equity cost of capital can be calculated from the share price formula given below by changing the subject of the formula to cost of equity,r.
stock price=Do*(1+g)/r-g
Do is the dividend paid this year of $1.09
g is the dividend growth of dividend which is computed thus:
g=share price at end of the year-share price now/share price now
g=($24.33-$22.77)/$22.77=6.85%
r is the unknown
stock price is $24.33
24.33=1.09*(1+6.85%)/(r-6.85%)
24.33=1.164665
/r-6.85%
r=(1.164665
/24.33)+6.85%
r=11.64%
It is log-linear which is the best fit to the data?
Answer: 0.2
Explanation:
Income elasticity of demand refers to the amount that the quantity demanded for a good changes by in response to a change in income.
The formula is therefore:
= Percentage change in quantity demanded of Peanut butter / Percentage change in income
= 2% / 10%
Income elasticity of demand = 0.2
