If labor in Mexico is less productive than labor in the united states in all areas of production then both Mexico and us still can benefit from trade.
Labor is the amount of physical, mental and social effort spent to produce goods and services in the economy. We provide the know-how, human resources, and services necessary to turn raw materials into finished products and services.
A business that requires more people and fewer machines is known as a labor-intensive business. The beauty, home construction, education and fashion industries are examples of labor-intensive industries.
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Answer:
$13.25
Explanation:
The computation of the new book value per share is as follows
current market price per share is
= market value ÷ number of shares outstanding
= $936,000 ÷ 60,000
= 15.6
Now
number of shares to be issued is
= cost of the machine ÷current market price per share
= $498,000 ÷ $15.60
= 31923.07692
Now
The new book value per share is
= (current book value + amount raised from the issuance of shares ) ÷ ( current number of shares + number of shares issued for machinery purchase
= ($720,000 + $498,000 ) ÷ ( 60,000 + 31923.08 )
= $13.25
Answer:
The beta is 1
Explanation:
The computation of beta using the CAPM model is shown below:
As we know that
Expected rate of return = Risk free rate of return + Beta × Market risk premium
9.5% = 5% + Beta × 9.0%
9.5% - 5% = Beta × 9.0%
9.0% = Beta × 9.0%
So, the beta is 1
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A certificate of deposit (CD) would be the best banking
choice when the interest rate is determined ahead of time and there is an
assurance to get back what you put in plus interest once the CD matures. If you leave the money alone during the
investment period then the bank will pay you an interest rate slightly higher
than what you would have earned in a money market or checking account. Thus,
all gains from certificate of deposits are taxable as income unless they are in
a tax-deferred (IRA) r tax-free (Roth IRA) account.