Answer:
$2,100,000
Explanation:
Given:
Profit generated = $100,000
Profit growth rate = 5% per year
Discount rate = 10% per year
Now,
The present value of the future profit can be calculated using the formula as:
Present value =
or
Present value =
or
Present value = $2,100,000
The present value of all the shop's future profits will be $2,100,000
Answer:
The portfolio beta is 1.048.
Explanation:
The portfolio beta is the measure of systematic risk for the whole portfolio. It is made up of the weighted average of the individual stock betas that form up the portfolio.
The weightage of stocks in portfolio is determined by the investments in stock as a proportion of total investment in the portfolio. The formula for portfolio beta is,
p Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
The investment in Con Edison = 50000 - 12000 - 20000 = 18000
Using the above formula, we calculate the portfolio beta to be,
p Beta = 20000/50000 * 1.3 + 12000/50000 * 1 + 18000/50000 * 0.8
p Beta = 1.048
Answer:
False
Explanation:
Labour Markets are at equilibrium where : Market Demand for labour (by firms) = Market Supply of Labour (by labourers), & the respective curves intersect.
Labour Demand curve is downward sloping, as firms' demand is inversely related to price i.e wages. Labour supply curve is upward sloping, as labourers' supply is directly to price (wages).
If wage is higher than equilibrium wage : labour supply being directly related to wage, will be more. And, labour demand being inversely related to wage, will be less. It would lead to excess supply of labour in comparison to its demand. This would imply many people are able & willing to work at the prevailing wage rate , not getting jobs - i.e unemployment.
Wage higher than equilibrium wage rate will have Unemployment impact, irrespective of the cause (minimum-wage laws or other) of wage rise.
Answer:
True
Explanation:
Based on the information provided within the question it can be said that in this scenario Hamid Possesses information power. This is when an individual or group control's information that is needed by others in order to be able to accomplish a certain goal. Which in this case since Hamid has information regarding the competing companies product which the new employer needs, then Hamid has information power.
The step transforms the item toward completion (something changes)
The step is done right the first time (not a rework step)
The customer cares (or would pay) for the step to be done.