Answer:
Explanation:
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Answer:
Explanation:
Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%
Now, yield is r3 = 7.75+1.5 = 8.25%
r3=r*+inf
8.25=3.5+inf
inf=4.75%
4.75 = (4.25+i+i)/3
14.25 = 4.25 +2i
2i = 10
i = 5%
Inflation expected after year 1 is 5%
According to the human-capital view, education is an indicator of natural ability. Human capital encompasses assets such as education, training, intelligence, skills, health, and other characteristics valued by employers such as loyalty and punctuality. As such, it is an intangible asset or characteristic that does not (and cannot) appear on a company's balance sheet.
Human capital is thought to boost productivity and consequently profitability. The more a firm invests in its personnel, the more likely it is to be productive and successful. Because not all labor is created equal, firms can develop human capital by investing in employers training, education, and perks.
To learn more about human-capital, click here.
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Answer:
Theory of comparative advantage states that a country has a comparative in a production of certain commodities if the opportunity cost of producing these commodities is lower than the other countries.
Here, it is given that country A is a efficient producer of tin and there are some difficulties in producing corn. So, country A have to concentrate on the production of Tin and purchase the corn from any other efficient producer.
Answer:
local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?
Explanation: