Answer:
A) Forces of Demand and Supply
B) Slow GDP growth
C) Level of Unemployment
D) Monetary Policies by Central Bank
Explanation:
A) Expressing the mean from the concept of laws of economics, the Yen, like the Dollar and Euro, is propelled by forces of demand and supply. The problems that effect demand and supply can directly or indirectly impact the rate of the Yen.
B) Gross Domestic Product (GDP) in economics measure or evaluate the net production and consumption of products and services within the country in a given year. It certainly gives sufficient information about the fitness of Japan’s economy and can seriously impact the Yen. That is, absence of growth usually spurs the currency to decline.
C) Level of unemployment is another crucial component that can affect the Yen. Virtually everyone who buys and sell in the different markets, especially in the foreign currency exchange, needs to the annual jobs statistical reports, which indicate the overall nature of the Japanese economy. A decrease in unemployment which is sufficiently more than forecasted by the market can have an effect on the currency resulting in currency appreciate. It important to note that in general, improvements in employment are seen as very positive within the market.
D) Monetary Policies by central bank. Most times the monetary policies of the government tend to weaken the currency. It’s for this reason that foreign currency market dealers anticipate signs on changes in monetary policy.
Answer: D) Favorable Unfavorable
Explanation:
To begin, it is worthy of note that in Variance, if something is said to be Favourable, it means a negative Variance because less resources than planned were spent. When it is Unfavourable, it means a positive balance variance.
Now, The formula for Labour Rate Variance is as follows,
LABOUR RATE VARIANCE=(ACTUAL RATE-STANDARD RATE)*ACTUAL HOURS WORKED
Seeing as the old workers were being paid $18, and the new office ones were paid $10, we can see that to be the actual rate was less than the standard rate. This would mean that there was a FAVOURABLE balance.
Labour Efficiency is calculated in a similar way,
LABOUR EFFICIENCY VARIANCE=(ACTUAL HOURS WORKED-STANDARD HOURS)*STANDARD RATE.
Now, these are Office workers not assemblyline workers. They do not have the experience to work in such a way that they produce as fast or as efficiently as their striking Assemblyline colleagues.
This would then mean that their actual hours will be MORE than the standard rate which can only lead to an UNFAVOURABLE BALANCE.
Answer:
APR = 14.28%
EAR = 14.7%
Explanation:
Stock price = $80.82
Current stock price = $86.59
The return will be as below since no dividend was stated
R = ($86.59 - $80.82) / 80.82
R = 0.0714
R = 7.14%
For six months, the return was 7.14%
Annual percentage yield (APR) = 2*(7.14%) = = 14.28%. Therefore, the value of APR = 14.28%
Effective Annual Return = [1 + (Annual Rate/ N )] ^N - 1
= [1 + (14.28% / 2]^2 - 1
= [1 + 0.071]^2 -1
= 1.147 - 1
= 0.147
= 14.7%
Increasing market power allows firms to raise prices and not lose customers. This is a way to increase revenues without increasing cost.
Answer:
Value of the company = $124,019.61
Explanation:
<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>
<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975
/0.153= 124,019.6078
Value of the company = $124,019.61
