Answer:
a. $700,000
86%
c. No
Explanation:
a. Jacobs will earn $700,000 per year. This equals the normal salary for a designer, $100,000, plus the economic rent he collects for his special talent, $600,000.
6/7 or 0.857 or 86% of his salary is thus economic rent. This is found by 600,000/700,000
b. The answer is No. If Jacobs’s employer withholds some of the additional revenue it takes in as a result of hiring him, some other advertising company will offer him a higher salary and still manage to earn an economic profit. Bidding for Jacobs will continue until firms are indifferent between paying him $600,000 and hiring any other designer for $100,000.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The holding period return of the stock is - 6 % or - 6.0%
Explanation:
Solution
Given that:
You are thinking of purchasing a stock that currently sells for= $50
The expected price of the stock =$45
Dividend expected to be paid =$2
Risk free rate = 5%
Market return = 10%
Stock (beta) = 0.85
We will now find the holding period return of the stock which is given below:
The formula for calculating the holding period return of a stock is given as,
= The Expected price in a year + Dividend earned during the year – Purchase Price / Purchase Price
We recall that:
The Purchase Price = $ 50
Expected price in a year = $ 45
Dividend earned during the year = $ 2
Now,
By Applying the above values in the formula we have the holding period return of the stock as
:
= [45 + 2 – 50] / 50
= - 3 / 50
= - 0.0600 = - 6.00 %
= - 6.0 % ( when rounded off to one decimal place )
Therefore, the Holding period return of the stock is - 6 % or - 6.0%
Answer:
Some financial details with which to calculate the bid price are missing,find them in the attached question.
The bid price if the predetermined overhead rates have applied is $112,473.00 as shown below
Explanation:
a) Plantwide Overhead Rate = Manufacturing overhead/direct labor cost=$1,543,610.00/$947,000.00
Plantwide Overhead Rate = $1.63
Total Manufacturing Cost = Direct Material + Direct Labor + overhead applicable
Total Manufacturing Cost = $18,700.00+$21,400.00 + $(21400*1.63
)
Total Manufacturing Cost = $ 74,982
Bid Price = Total Manufacturing Costs *1.5(150%)
Company's Bid Price = $74,982.00*1.5
Company's Bid Price = $ 112,473.00
Correct option is d : principal, interest, taxes, insurance.
Housing expenses are commonly referred to as piti. piti stand for principal, interest, taxes, insurance.
Principal, interest, taxes, insurance or in other words PITI are the sum components of a mortgage payment. Specially, components of the mortgage payment consists of the principal amount, loan interest, property tax, as well as the homeowners insurance and private insurance premiums mortgage.
PITI is generally quoted on the monthly basis. It is then compared to a borrower's monthly gross income for computing the front-end and back-end ratios of any individual.
To know more about PITI here:
brainly.com/question/1395659
#SPJ4
