In Chapter 6 of the textbook, read “Why Market Forces Will Overwhelm a Higher Minimum Wage” by David Neumark then read the following Forbes’ article. While some information in the article is less current such as the anticipated Biden bill which has been outlined, the article provides a comprehensive history about the minimum wage.
After reading both articles, answer the following prompt based on the first letter of your first name. For example, my first name is Tammy and first letter starts with a T; therefore I would answer Prompt 2.
Prompt 1 – Letter A – M
Suppose you are an economist in charge of designing policy to help low-wage workers. Would you prefer a minimum wage or an earned income tax credit? Why?
Prompt 2 – Letter N – Z
Suppose you are a politician running for office. Would it be easier to campaign on a platform of a higher minimum wage or a more generous earned income tax credit? Why?
For this Discussion, imagine the following scenario:
You are the director of operations for your company, and your vice president wants to expand production by adding new and more expensive fabrication machines. You are directed to build a business case for implementing this program of capacity expansion. Assume the company’s weighted average cost of capital is 13%, the after-tax cost of debt is 7%, preferred stock is 10.5%, and common equity is 15%. As you work with your staff on the first cut of the business case, you surmise that this is a fairly risky project due to a recent slowing in product sales. As a matter of fact, when using the 13% weighted average cost of capital, you discover that the project is estimated to return about 10%, which is quite a bit less than the company’s weighted average cost of capital. An enterprising young analyst in your department, Harriet, suggests that the project is financed from retained earnings (50%) and bonds (50%). She reasons that using retained earnings does not cost the firm anything since it is cash you already have in the bank and the after-tax cost of debt is only 7%. That would lower your weighted average cost of capital to 3.5% and make your 10% projected return look great.
Based on the scenario above, post your reactions to the following questions and concerns:
What is your reaction to Harriet’s suggestion of using the cost of debt only? Is it a good idea or a bad idea? Why? Do you think capital projects should have their own unique cost of capital rates for budgeting purposes, as opposed to using the weighted average cost of capital (WACC) or the cost of equity capital as computed by CAPM? What about the relatively high risk inherent in this project? How can you factor into the analysis of the notion of risk so that all competing projects that have relatively lower or higher risks can be evaluated on a level playing field?
Need APA format with 500 words.
Why do Paraguay, Puerto Rico and other nations feel compelled to create and enforce special laws that protect their local agents from foreign companies?
Global marketers can avoid legal conflicts by understanding the reasons conflicts arise in the first place. Identify and describe several legal issues that relate to global commerce.
Please read the word file and check the sample paper for instructions. It has to be in your own words and no plagiarism. Paper requires tables and chart comparison.
Topic: Supply and Demand
Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain.
Post your initial reply to the topic above by Wednesday evening at 11:59pm.
Read through the other entries and reply directly to at least two classmates by Sunday evening at 11:59pm.
Please make a substantive contribution to the discussion; short replies such as “I agree” will not earn full points. When you reply, make sure to use professional grammar and punctuation
Consider your current or past employer. As a corporate executive, which business decisions require the analysis of opportunity costs? Discuss how the pandemic impacted competition. How has supply and demand changed during the pandemic? Explain.
Given the quantity of total movie tickets and total concession stand items consumed in a month and the total utility derived at Ruby Red’s Movie Theater for each, calculate the marginal utility and the marginal utility per dollar for movie tickets and average concession stand items.
Do goods and technology have “nationality”? What is meant by this statement, and do you think that the laws of a nation should apply to its goods and technology after they have left the territory of that nation? What principles of international law allow a nation to extend its jurisdiction over goods and technology that originated there, and can it make arguments for or against the extraterritorial application of export control laws?
Does this differ from the extraterritorial application of antitrust law or laws against bribery of foreign government officials?
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