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2 years ago

Due to a downturn the wage of entry level workers has declined by 10 per cent, as a

1 answer:

8 0

The cross elasticity of demand for senior workers is 1.5. Senior workers and entry-level workers are gross complements.

The scale effect dominates in this example.

If the wage of the entry level workers increase, the demand curve would shift to the right.

<h3>What is the crosss price elasticity?</h3>

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

Cross price elasticity = 15% / 10 = 1.5

Complement goods are goods or resources that are used together. As a result of the decline in wages, senior workers would be laid off. This means that senior workers and entry level workers work together.

<h3>What is the effect on the demand curve if the wages of entry level workers increase?</h3>

If the wage of the entry level workers increase, the demand for senior workers wouuld increase. This would lead to a shift to the right of the demand curve for senior workers.

To learn more about cross price elasticity, please check: brainly.com/question/26054575

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What is a shared risk pool in an annuity?

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Risk pooling allows an insurance carrier to provide an income stream via an immediate annuity, even with its costs and expenses, far more cheaply than a person could on his or her own. Risk pooling is the practice of sharing all risks among a group of insurance companies.

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3 years ago

Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o

vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

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3 years ago

The _____ section of the business plan tells the reader what the organization is committed to doing.

Andru [333]

Accounts department

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3 years ago

If a reform of the tax laws encourages greater saving, the result would be

GarryVolchara [31]

Answer:

The correct answer is

d. lower interest rates and greater investment.

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3 years ago

Western Electric has 32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent

Sergio039 [100]

Answer:

c. 11.10%

Explanation:

Options are <em>"a. 10.29% b. 10.51% c. 11.10% d. 10.72% e. 11.49%"</em>

Market Value of Equity = $80 * 32,500

Market Value of Equity = $2,600,000

Market Value of Preferred Stock = $95.50 * 7350

Market Value of Preferred Stock = $701,925

Market Value of Debt = $407,000 * 1.115

Market Value of Debt = $453,805

Total Market Value = Market Value of Equity + Market Value of Preferred Stock + Market Value of Debt

Total Market Value = $2,600,000 + $701,925 + $453,805

Total Market Value = $3,755,730

kP = Annual Dividend / Current Market Price

kP = $7.90 / $95.50

kP = 0.082723

kP = 8.27%

WACC = [wD * kD * (1 - t)] + [wP * kP] + [wE * kE]

WACC = [(453,805/3,755,730) * 8.11% * (1 - 0.40)] + [(701,925/3,755,730) * 8.27%] + [(2,600,000/3,755,730) * 12.95%]

WACC = 0.59% + 1.55% + 8.96%

WACC = 11.10%

6 0

3 years ago