Polycom Systems earned $571 million last year and paid out 28 percent of earnings in dividends. Required:
a. By how much did the company’s retained earnings increase?
b. With 100 million shares outstanding and a stock price of $137, what was the dividend yield?

$50 / hr

Explanation:

The law of comparative advantage states that an entity should be able to produce its goods and services at a lower opportunity cost compared others in the same line of business so as to have an edge in the market.

Looking at the scenario ,if Ashley can type 120 words in a minute and also earn $100 / hr as an attorney , the opportunity cost of settling for the attorney work is the income earned through typing.

The law states that goods and services should be produced at a cost lower to the opportunity cost. To Ashley , the cost of hiring Benjamin should not be more than half of her hourly income as Benjamin production rate is half of hers.