Given labor is on the horizontal axis and capital is on the vertical​ axis, as the price of labor​ increases, the isocost line becomes flatter . If both the price of labor and capital rise in the same​ proportion, which of the following will occur​ (holding production costs​ constant)? A. The isocost line becomes flatter. B. The isocost line makes a parallel shift inward. C. The isoquant makes a parallel shift outward. D. The isocost line shifts outward. E. The isocost line becomes steeper.

Answers

Answer 1
Answer:

Answer:

B The isocost line makes a parallel shift inward

Explanation:

This is because the increase in price is proportional ,less of labor and capital can be bought,and isocost line shifts inward parallely.

Answer 2
Answer:

Final answer:

If both the price of labor and capital increase proportionally while holding production costs constant, the isocost line makes a parallel shift inward, indicating less of both inputs can be afforded for the same level of expenditures.

Explanation:

When considering the effects of changes in the prices of inputs such as labor and capital on the production process, the representation of these changes can be seen on an isocost line in a graph where labor is on the horizontal axis and capital is on the vertical axis. If the price of labor increases, typically the isocost line becomes flatter; however, if both the price of labor and capital rise in the same proportion and production costs remain constant, the result is choice B: The isocost line makes a parallel shift inward. This reflects that at the new higher prices, the firm can afford less labor and less capital for the same level of expenditures, hence the isocost line moves closer to the origin of the graph.

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You have been asked to estimate the beta for a large South Korean company, with large holdings in steel and financial services. A regression of stock returns against the local market index yields a beta of 1.10, but the firm is 15% of the index. You have collected the average betas for global companies in each of the sectors, as well as the average debt equity ratios in each sector: Setor Average Regression Beta Average D/E ratioSteel 1.18 30% Financial Services 1.14 70% The average tax rate for these industries is 40%. In the most recent period, the company you are analyzing earned 70% of its operating income from steel and 30% from financial services. The firm also had a debt/equity ratio of 150%, and a tax rate of 30%. Estimate the levered beta for the company.
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To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 860,000 shares authorized and 260,000 shares outstanding. The par value of the stock is $1 per share and the market value is $100 per share. Prepare the journal entry to record this large stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer:

Dr. Retained Earning                    $86,000,000

Cr. Common Stock                       $860,000

Cr. Paid-in-Capital excess of par $85,140,000

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Dividend Value = 860,000 x 100 = $86,000,000

Par Value of Stocks = $1 x 860,000 = $860,000

Add-in-capital excess of par common stock = ($100-$1) x 860,000 = $85,140,000

Final answer:

To record a large stock dividend, debit the Retained Earnings by the total market value of the dividend, then credit the Common Stock by the par value part, and credit the Paid-In Capital in Excess of Par by the remaining part.

Explanation:

To record a large stock dividend, you need to debit (decrease) Retained Earnings and credit (increase) Common Stock and Paid-in Capital in Excess of Par. Here's an example using Shriver Food Systems, Inc. data:

  1. Calculate the total market value of the dividend: 260,000 shares * $100 per share = $26,000,000
  2. Deduct the par value: $26,000,000 - (260,000 shares * $1 par value) = $25,740,000
  3. Make the journal entry: Debit Retained Earnings for $26,000,000. Credit Common Stock for $260,000 (this represents the par value). Credit Paid-In Capital in Excess of Par for $25,740,000 (this represents the remainder).  

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One of the themes that came out of the survey responses is that employees feel bored and unchallenged because they only do a narrow job. According to the job characteristics theory, What should you do to address this issue?

Answers

Answer: Improve skill variety

Explanation:

The logic behind improving skill variety in job design is that it will reduce boredom and also better challenge employees, this way, it will make the job for challenging thereby providing motivation and also increasing job satisfaction. Employees opinion can also be included in the formation of the job design as this will give them a sense of importance while incorporating those ideas that will make them perform the job effectively.

What is the effect on​ China's aggregate demand when the United States goes into​ recession, when Japanese and European firms establish new plants in​ China, or when the Chinese yuan strengthens against the U.S.​ dollar?

Answers

Answer:

When the United States goes into recession - China's aggregate demand suffers greatly, meaning that it is reduced. This is because China is an important exporter of goods to the United States, so the exports element of Aggregate Demand will fall, bringing down Aggregate Demand as a whole.

When Japanese and European firms establish new plants in​ China - Chinese aggregate demand increases because more private investment from abroad arrives in the country, not only benefiting the Japanese owners, but also Chinese workers in the form of wages, Chinese companies in the form of more domestic consumption, and the Chinese government in the form of more tax revenue.

when the Chinese yuan strengthens against the U.S.​ dollar? - Aggregate demand will probably fall because a stronger yuan will decrease Chinese exprots, and increase American imports to China, and imports are not part of the Aggregate Demand calculation.

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?

Answers

Answer:

$4,710

Explanation:

The computation of bad debts expense adjusting entry is shown below:-

Bad debts expense adjusting entry = Sales + Uncollectible allowances - Balance in allowance for doubtful accounts

= ($1,175,000 × 0.5%) - $1,165

= $5,875 - $1,165

= $4,710

Therefore for computing the bad debts expense adjusting entry we simply applied the above formula.

The adjusting entry is shown below:-

Bad Debt A/c Dr, $4,710

     To Allowance for Doubtful Debts $4,710

(Being bad debt account is recorded)

What is persecution

Answers

Answer:

: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.

Explanation:

Hostility and ill treatment especially because of race or political or religious beliefs; oppression

Zap Power Company pays an annual dividend on its preferred stock of $4.54 per share. The investors have an 8% required rate of return. What is the price of the stock

Answers

Answer:

The price of the stock is $56.75.

Explanation:

This can be calculated using the following formula:

P = d /r ……………………………………… (1)

Where;

P = price of the stock = ?

d = preferred stock dividend = $4.54

r = required rate of return = 8%, or 0.08

Substituting the values into equation (1), we have:

P = $4.54 / 0.08

P = $56.75

Therefore, the price of the stock is $56.75.