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USPshnik [31]
2 years ago
14

In a planned economy, prices of commodities are controlled by _________.

Business
1 answer:
AnnZ [28]2 years ago
5 0
<h3>Answer:</h3>

C. The government

<h3>Explanation:</h3>

Vocabulary

First, it is important to define the key terms in the question and answers.

  • Planned Economy- A planned economy is an economy where the investments and capital are allocated by the government.
  • Commodities - Commodities are economic goods that have real value due to their real-life usefulness (like lumber) or rarity (like gold).

How Planned Economies Work

As its name suggests, a planned economy plans the economy out and the price of goods within the markets. These plans are created by the government. This means that private businesses, consumers, and supply/demand do not control prices. Only the government can do that because the government has full control of planned economies. This is the reason that planned economies are also called command economies because the economy is commanded by the government.

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A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra
Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

Ke= r_f + \beta (r_m-r_f)  

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

Ke= 0.085 + 1.3 (0.045)  

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

\frac{Principal}{(1 + rate)^{time} } = PV

\frac{3.444}{(1 + 0.1435)^{1} } = PV

3.011805859

\frac{4.23612}{(1 + 0.1435)^{2} } = PV

3.239633762

\frac{61.6686857}{(1 + 0.1435)^{2}} = PV

47.16201531

We add them and get the value of the stock:

53.413455

5 0
3 years ago
f interest rates rise but the quantity of loanable funds demanded and supplies remains constant, this implies that Group of answ
babymother [125]

Answer:

The demand and the supply of loanable funds both remained the same.

Explanation:

If the interest rates rise, but both demand and supply of loanable funds remanin constant, this means that demand and supply remained the same.

This would be a problem in the real world, because when interest rates rise, what should happen is that the supply of funds rise, while demand falls, because a rise in interest rates makes investment more expensive since interset rates are simply the price of the loanable funds.

3 0
3 years ago
In a company's annual report, the section called Management Discussion and Analysis provides critical information for interpreti
ddd [48]

Answer:

A. True

Explanation:

The section called Management Discussion and Analysis in an annual report analyzes the performance of a company, includes comments from the management about the financial statements to allow the readers to understand the information in a better way and includes the future objectives and plans. According to this, the answer is that the statement that indicates that in a company's annual report, the section called Management Discussion and Analysis provides critical information for interpreting the financial statements and assessing the future of the company is true.

7 0
2 years ago
Is Starbucks bucking the trend of other food-service stores, or is something else going on?
Natasha_Volkova [10]

Answer:

its it's something else

4 0
3 years ago
An $11,000 mortgage has a 30-year term (requiring monthly payments) and a 6% nominal interest rate. (a) What is the monthly paym
neonofarm [45]

Answer:

Answer:

a) Monthly payment = $65.95

b) Remaining balance on her loan after making 12th payment = 11,000 - (65.95 x 12) = $10208.6

c) Interest paid in month 13 = 10208.6 * 0.5% = $51.043

  Principal paid in month 13 = $65.95 - 51.043 = $14.907

Explanation:

Using financial calculator:

PV = 11,000

n = 30 years = 360 months

i/r = 6%/year = 0.5% / month

FV = 0

PMT = ? (Monthly payment = ?)

a) Monthly payment = $65.95

b) Remaining balance on her loan after making 12th payment = 11,000 - (65.95 x 12) = $10208.6

c) Interest paid in month 13 = 10208.6 * 0.5% = $51.043

  Principal paid in month 13 = $65.95 - 51.043 = $14.907

Explanation:

8 0
3 years ago
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