In the Case of FedEx Where Contractor/drivers Sued for Overtime

question 8

Multiple Choice

In the case of FedEx where contractor/drivers sued for overtime pay and benefits, what was the primary reason why the courts ruled that they had been misclassified and were, in fact, employees?

• A)the contractors paid for their own uniforms
• B)the company controlled the activities of the drivers
• C)the contractors owned their own trucks
• D)the contractors worked for FedEx for a long period of time

Calculate and interpret Price-Earnings (P/E) ratios and how they are affected by various factors.

Understand the role and calculation of the plowback (earnings retention) ratio in growth and valuation.

Analyze the effects of growth rates on dividends and their subsequent impact on stock valuation.

Apply the Constant-Growth DDM to estimate stock value in a constant growth scenario.

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Definitions:

Wage Rate

The amount of compensation offered to an employee per unit of time (e.g., hourly, daily) or piece of work done.

Purely Competitive

Purely competitive markets are characterized by many buyers and sellers, homogeneous products, and the absence of barriers to entry or exit, leading to firms being price takers.

Imperfectly Competitive

Refers to market structures that do not meet the conditions of perfect competition, often characterized by a small number of sellers, product differentiation, or barriers to entry.

Marginal Revenue Product

The additional revenue generated from employing an additional unit of a resource or factor of production.