When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.
Hope that helps!
Answer: $12000
Explanation:
The amount of interest should Turnbull include in the cost of the building from the current period will be calculated as the outstanding debt multiplied by the interest rate. This will be:
= $200,000 × 6%
= $200,000 × 6/100
= $200,000 × 0.06
= $12,000
Therefore, the correct option is C.
Joint ventures have access to local partner's knowledge and shared development costs and risks are advantages in this foreign market entry mode. A joint venture often gives companies access to new markets. Two or more companies come together to benefit themselves and stay their own company.
Answer:
P0 = $51.9956 rounded off to $52.00
Explanation:
The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.
The formula for price of the stock today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]
Where,
- D0 is the dividend today or most recently paid dividend
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 8%
- r is the required rate of return
P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +
2.5 * (1+0.2)^3 / (1+0.15)^3 +
[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)
P0 = $51.9956 rounded off to $52.00
Answer:
A. The labor force to increase as previously discouraged workers re-entered the labor force.
Explanation:
When the labor market is doing very well and jobs are easy to get, we would expect the labor force to increase as previously discouraged workers re-entered the labor force.
This ultimately implies that, when the labor market is performing exceptionally or excellently and the unemployment rate is very low because people are able to secure employment easily, there would be a significant increase in the number of people employed and as such leading to an increase in the labor force as more people would be motivated to join the labor force.
Hence, an optimal and efficient economy is one that is characterized mainly by a low unemployment rate with previously discouraged workers being motivated to come back into the labor force.