If the market value of firm A is $2.2 million and the replacement cost of capital is $605,500, find the Tobin's q. Should the firm replace capital? Explain your respo
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If the market value of firm A is $2.2 million and the replacement cost of capital is $605,500, find the Tobin's q. Should the firm replace capital? Explain your response.
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- If the market value of firm A is $1.5 million and the replacement cost of capital is $450,000, find the Tobin's q.d. Should the firm replace capital? Elaborate on your response.c. If the market value of firm A is $1.5 million and the replacement cost of capital is $450,000, find the Tobin's q.d. Should the firm replace capital? Explain your response.Consider a worker who is offered a salary bonus of $2,000 for each of the next two years if he or she enrolls in a job training program this year. The total cost to the worker, including any forgone earnings, is $3,000. (1). What is the internal rate of return on this investment? (2). Would this be a good investment for someone with a discount rate of 9%? Why? Please show your solution process and explain.
- ''A firm should never employ another worker if the new person causes diminishing returns''. Is statement correct? if so why? if not explain why not?Conceptually, what does it mean for the shadow price of capital to be equal to 1.3? (what does this particular number mean)?Find the Marginal efficiency of capital if the Prospective yield is $600 the supply price is $280 in the given question.
- All of the following will cause a shift in the demand curve for capital EXCEPT: A change in sales expectations. the interest rate. changes in labor prices. technological change.In an efficient market, investors can consistently make high returns since it is easier to estimate price movements. True or False?Induced investment is made with the intent of producing a substantial output. a. producing a substantial output. b. marginal efficiency of capital with the rate of interest c. to meet the equilibrium of demand
- Ehat is the maximum amount you would pay for an asset that generates an income of P250,000 at the end of each of five years if the opportunity cost of using funds is 8%?In the healthcare economy, as in many other markets, if the firm has a high capital-to-labor ratio, it is more responsive to changes in price due to the inability to easily switch production capacity because of the fixed nature of capital or the substitutability of labor for capital. Group of answer choices True FalseYou are attending the annual stockholders’ meeting of PIC Company. A fellow shareholder points out that the manager of PIC earned $100,000 last year, while the manager of a rival firm, CUP Enterprises, earned only $50,000. A motion is made to lower the salary of PIC’s manager. Given only this information, what should you do?
