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2 years ago

Those who make economic policy concerning price controls often do so in order to?

Business

1 answer:

nlexa [21]2 years ago

5 0

Answer:

establish a more equitable result based on normative judgements. In the market for personal computers and in the stock market: 1) supply and demand shifts change prices and quantities.

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"The way in which a manager working in the country of Batangonia interacts with a manager working in the country of Octavia is t

konstantin123 [22]

Answer: The scenario exemplifies <em><u>simplification.</u></em>

Explanation:

Simplification is a process used to make something easier to understand. It can also be used to help something more simple to learn and also to easier to do.

With this scenario, the manager is interacting the exact same way as they always do no matter where they are located. This is helpful because the manager does not need to learn or remember to change the way they act when meeting someone new in business.

5 0

3 years ago

KCE Corporation is currently operating at its target capital structure with market values of $140 million of equity and $155 mil

MariettaO [177]

Answer:

Option (a) is correct.

Explanation:

Given that,

Equity = 140 Millions

Debt = 155 Millions

Debt Equity Ratio = Debt ÷ Equity

= 155 Millions ÷ 140 Million

= 1.11

KCE is financing its new project with 25 Millions

Let the New debt issued by x and the New equity financed be (25-x) .

Debt Equity Ratio = Debt ÷ Equity

1.11 = (155 + x) ÷ (140 + 25 - x)

1.11 = (155 + x) ÷ (165 - x)

183.15 - 1.11x = 155 + x

28.15 = 2.11 x

x = 13.34

Option (a) is the most nearest to this answer.

New Debt = 155 + 13.34

= 168.34 Millions

New Equity = 140 + 11.66

= 151.66 Millions

5 0

4 years ago

Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate of 5 percent and is currently selling at a d

mezya [45]

Answer:

Stock P's current yield = 8.18%

Stock D's current yield = 5.87%

Stock P's capital gains yield = -1.31%

Stock D's capital gains yield = 1.4%

Explanation:

price of bond P:

0.07 = {100 + [(1,000 - MP) / 10]} / [(1,000 + MP) / 2]

0.07 x [(1,000 + MP) / 2] = 100 + [(1,000 - MP) / 10]

0.07 x (500 + 0.5MP) = 100 + 100 - 0.1MP

35 + 0.035MP = 200 - 0.1MP

0.135MP = 165

MP = 165 / 0.135 = $1,222.22

price of bond D:

0.07 = {50 + [(1,000 - MP) / 10]} / [(1,000 + MP) / 2]

0.07 x [(1,000 + MP) / 2] = 50 + [(1,000 - MP) / 10]

0.07 x (500 + 0.5MP) = 50 + 100 - 0.1MP

35 + 0.035MP = 150 - 0.1MP

0.135MP = 115

MP = 115 / 0.135 = $851.85

current yield = dividend / stock price

Stock P's current yield = 100 / 1,222.22 = 8.18%

Stock D's current yield = 50 / 851.85 = 5.87%

price of bond P in one year:

0.07 = {100 + [(1,000 - MP) / 9]} / [(1,000 + MP) / 2]

0.07 x [(1,000 + MP) / 2] = 100 + [(1,000 - MP) / 9]

0.07 x (500 + 0.5MP) = 100 + 111.11 - 0.111MP

35 + 0.035MP = 211.11 - 0.111MP

0.146MP = 176.11

MP = 176.11 / 0.146 = $1,206.23

price of bond D in one year:

0.07 = {50 + [(1,000 - MP) / 9]} / [(1,000 + MP) / 2]

0.07 x [(1,000 + MP) / 2] = 50 + [(1,000 - MP) / 9]

0.07 x (500 + 0.5MP) = 50 + 111.11 - 0.111MP

35 + 0.035MP = 161.11 - 0.111MP

0.146MP = 126.11

MP = 126.11 / 0.146 = $863.77

capital gains yield = (P₁ - P₀) / P₀

Stock P's capital gains yield = (1,206.23 - 1,222.22) / 1,222.22 = -1.31%

Stock D's capital gains yield = (863.77 - 851.85) / 851.85 = 1.4%

6 0

3 years ago

Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak st

Paladinen [302]

Answer:

<h3>Required:</h3>

1. (a) Which company has the better profit margin? (b) Which has the better asset turnover? (c) Which has thebetter return on assets?

2. Which company has the better rate Of growth in sales?

3. (a) Did Roak successfully use financial leverage in the current year? (b) Did Clay?

4 0

4 years ago

When a closed economy is in equilibrium, we know with certainty that

faust18 [17]

Answer:

inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

4 0

3 years ago