Bias may be occurring. Bias is basically thinking someone is better than another person due to one factor, without even knowing the person. In this instance, the store manager is only hiring shift supervisors who have a degree, rather than an experienced cashier without a degree. The bias here is dependent on the employee's educational history. The manager may think that even though the cashiers are great, they still may not have the qualifications that one would pick up in college.
Answer:
b.The total investment for Baldwin will be $12,728,474
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
Answer:
2.0%
Explanation:
Coupon received annually = $500*2% = $10
We have the cash flow from year 0 to year 6 as below:
Year 0 ($500)
Year 1 $10
Year 2 $10
Year 3 $10
Year 4 $10
Year 5 $10
Year 6 $510 (Principal $500 & coupon $10)
IRR (internal rate of return) whereas the present value of all cash flow is nil
It is very difficult to calculate IRR manually, but easily in excel = IRR(-500,10,10,10,10,10,510) = 2%
Please see excel attached
Answer:
experiment.
Explanation:
Experiment is a scientific investigation to test a hypothesis. It determines the relationship of the independent variable to the other variables in a controlled setup. It is essential to keep it control so that cause-effect relationship explained the outcome when other factors are manipulated. Experiment must prove its validity and reliability by obtaining the same results in a repeatable procedure.
