Answer:
The correct answer is option a.
Explanation:
Productivity can be defined as a measure of the efficiency of a person, factory, machine, system, etc, to convert inputs into outputs. In other words, it is the rate of output per unit of input.
Productivity is an important determinant of living standards. A higher level of productivity means better living standards. This implies that growth in productivity is the key determinant of growth in living standards.
Answer:
A) Scan the highway far and wide.
B) Think about how slow, stop or change lanes suddenly.
Explanation:
The Smith Driving Standards can be a very useful guide for defensive driving techniques. It includes the Five Principles of Defensive Driving:
- Aim high
: you should be alert and focused, and your head should be held up high so that you can view the whole road.
- The Big Picture
: try to identify angry or erratic drivers, and always be aware of your surroundings.
- Keep Your Eyes Moving: you must be alert and keep your eyes on the road.
- Leave Yourself An Out
: try to anticipate what other drivers are doing so that you have a possible exit in case you need to change lanes suddenly.
- Ensure they see you: make sure other drivers have noticed you.
Answer:
Real GDP per capita can increase or decrease when Real GDP increases
Explanation:
Real GDP per capita is calculated by dividing Real GDP by the number of people in a country. Therefore:
- If population increase more quickly than the increase in real GDP, then real GDP per capita would decrease.
- If population decreases, stays the same or increases more slowly as Real GDP increases, then real GDP per capita would increase.
Answer:
a)
Cost of debt (after tax) = 5.4%
Cost of preferred stock (
) = 10.53%
Cost of common stock (
) = 16.18%
b)
WACC = 14%
c)
project 1 and project 2
Explanation:
Given that:
Debt rate (
) = 9% = 0.09
Tax rate (T) = 40% = 0.4
Dividend per share (
) = $6
Price per share (
) = $57
Common stock price (
)= $39
Expected dividend (
) = $4.75
Growth rate (g) = 4% = 0.04
The target capital structure consists of 75% common stock (
), 15% debt (
), and 10% preferred stock (
)
a)
Cost of debt (after tax) =`
Cost of debt (after tax) = 5.4%
Cost of preferred stock () = 
= 10.53%
= 10.53%
Cost of common stock () = 
= 16.18%
b)
WACC = 14%
c) Only projects with expected returns that exceed WACC will be accepted. Therefore only project 1 and project 2 would be accepted
Dividends that were paid last year = $200
Retained earnings = $522
Net Income = Retained earnings + Dividends paid = 200+522 =722
Tax rate was 38%.
Earnings before tax (EBT) = Net income/ (1-tax rate) =722/(1-0.38) = 1,164.52
Interest expense= 624
Earnings before interest and tax (EBIT) = EBT + interest expense = 1,164.52 + 624 = 1,788.52
Earnings before interest and tax (EBIT) = 1,788.52
