b. What is the relationship between dividend yield and capital gains yield over time under constant growth assumptions? They both remain constant 3. A successful joint venture is expected to result in the 4.0% growth rate until 2000 but would increase the company’s normal growth rate to a constant 8.00% after that time. The joint venture also is expected to increase investors’ required return to
Foreign product taxes, or tariffs, were initially imposed to help in the growth of our country by keeping infant industries alive, as well as to bring in revenue for the United States federal government in its early days. But, as time has gone on, people have started to question whether these protective measures are actually helping or hurting us. And after much research, I can definitely assure you that tariffs are detrimental to our country’s well-being. By having these taxes on foreign products, people are naturally going to turn away and opt for something cheaper. So when these domestic companies are getting a steady flow of customers and income, they no longer have any need or incentive for improving the quality of their products.
They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues. Company Q is not displaying an obligation to its stakeholders; particularly the customers, community and employees by not maximizing a positive impact through ethical and philanthropic actions. In order for Company Q is improve their reputation they need to take on a socioeconomic approach to social responsibility. This approach focuses not only on profits but on the benefit of the business to society. Company Q can improve their social responsibility in three areas; customer satisfaction, community outreach and employee trust.
The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little.
The retailing recession was what the company believed caused this decline in sales. A company’s ability to pay off a short-term loan relies heavily on the company’s sales and profit. If these are declining then there is no way the company would be able to pay off the loan at the original forecasted time. Along with the downturn in sales SureCut Shears did not accurately forecast its financial needs. The company’s proforma statements did not take into account any external factors such as a retail recession taking place.
The public votes but if they are not made aware of the problem, and then there will be no such changes. Such changes are not what CEO’s or the one percenters want to come to pass, for the rich want the poor to remain poor. Revolutions start by those oppressed. In conclusion, there will be the poor as there will be the rich, but as the face of the U.S. changes (tans), so will the money power
Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not. It is the government and consumer’s responsibility to overcome the “stickiness” of the prices via certain stimulations. Essentially the government will directly, or indirectly, create opportunities for work for its unemployed citizens, therefore increasing consumer incomes to a point where they will match a compromise price level. This, in turn, will cause the demand for goods to go up which will decrease the price temporarily. The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy.
Raising Social Security’s Retirement Age Melissa M. Favreault and Richard W. Johnson July 2010 Increasing Social Security’s retirement age appears to be gaining political traction. In June 2010, the majority and minority leaders of the U.S. House of Representatives both expressed willingness to raise the retirement age. This would promote work at older ages, improve the system’s solvency by shortening retirements and reducing lifetime benefits, and better target benefits to the oldest Americans. It could, however, create hardship for workers with health problems unless Congress improves the disability safety net. Background • Retirees are eligible to receive Social Security benefits at age 62, the early entitlement age.
Supporters argue that it is unfair that people can work hard, and put in a 40 hour work week, but still not make enough to support their families. Critics of the wage increase say that raising minimum wage would force employers to fire employees, lower their hours, or used automated machines rather than human workers. Some critics also contend that the jobs that pay minimum wage do not require skill, are for uneducated workers, and are not meant to support a
Changes in the prime rate may affect the whole economy. For example, an increase may result in fewer consumers taking auto loans, which in turn may cause a slowdown in the automobile industry. Also, when interest rates go up it could possibly affect the casino and gambling industry too. Interest rates affect the way people spend their money. When interest rates rise, the casino industry may go down because people will not be able to spend money for leisure activities.