Raul Is a Cashier at a Large Chain of Department

question 21

Multiple Choice

Raul is a cashier at a large chain of department stores.During the holiday season,he regularly works 60 hours per week.Which of the following holds most true in this case?

• A) The stores satisfy the overtime provisions of the Fair Labor Standards Act of 1938 if they pay Raul overtime for the hours worked over 40 hours per week.
• B) The stores satisfy the overtime provisions of the Fair Labor Standards Act of 1938 if they pay Raul overtime only for the hours worked over 50 hours per week.
• C) The stores violate the Fair Labor Standards Act of 1938 if they employ Raul for less than 60 hours during a workweek.
• D) The stores violate the Fair Labor Standards Act of 1938 if they require Raul to work overtime.

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Definitions:

Growing Annuity

A series of cash flows that grow at a constant rate for a specific number of periods.

Cash Flow Growth Rate

The rate at which a company's cash flow increases over a specified period.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, considering the risk associated with it.

Discount Rate

The interest rate applied in discounted cash flow analysis for the purpose of determining the present value of future cash inflows.