1. Friedrich von Hayek------------Less government intervention gives people more economic freedom.
To Hayek, less government intervention implied more economic freedom. He trusted that when individuals are allowed to pick, the economy runs all the more proficiently. In the United States, the most grounded supporters of Hayek's thoughts were a gathering of business analysts at the University of Chicago. Known as the "Chicago School of Economics," this inexactly shaped, informal gathering of financial specialists was for the most part connected with free market libertarianism. The name alludes to financial specialists who got their tutoring in the Economics Department at the University of Chicago. To date, almost 50% of all Nobel Prizes in Economics have been won by analysts with connections to Chicago.
2. Milton Friedman---------Government should not control the money supply.
Milton Friedman saw the 1920s as years of indispensable and sustainable growth in the economy. Amid this period the Federal Reserve outstandingly extended the cash supply. This development was not reflected in an expansion in the normal cost level, on the grounds that fiscal powers were killed by simultaneous increments in efficiency.
3. John Maynard Keynes----------Government intervention is necessary for stability.
John Maynard Keynes made the hypothetical contentions for another kind of monetary system: government intervention used to smooth out the business cycle. Keynes died in 1946, yet his thoughts made the Keynesian school of financial aspects and prompted the improvement of macroeconomics. Keynes' belief system overwhelmed the financial worldview from 1945 until the late 1970s. As indicated by Keynes, free markets don't generally contain self-adjusting components; some of the time government intervention is important to limit downturns and advance development. He trusted that without state help, the blasts and busts in the business cycle could winding wild.
4. Adam Smith------------Competition is a regulatory force.
A market economy is a monetary framework in which people claim the greater part of the assets - land, work, and capital - and control their utilization through willful choices made in the commercial center. It is a framework in which the legislature assumes a little role. In this kind of economy, two powers - self-interest and competition - assume a critical job. The role of self interest and competition was depicted by financial specialist Adam Smith more than 200 years prior and still fills in as basic to our comprehension of how showcase economies work.
Answer: The evaluation of investments is important for knowing the real picture of the financial status of the organization.
Explanation:
The organization may have an internal bias that presenting the data for evaluating the investment. Being a member of the finance department I will suggest the organization get the financial statements and other finance-related documents so as to detect the internal bias in the investment statement.
Answer:
The correct answer is A. to persuade.
Explanation:
Persuasive presentations seek to turn information into action. They intend to write the future. There are no merely informative presentations because you always expect the audience to do something after your talk. And if neither you nor your audience expect to do anything, why bother?
Before starting a presentation, before opening PowerPoint, before drawing the first idea, consider:
What action do I want to inspire in the audience?
Imagine that the lamp genie appears and grants you a wish:
"Ask me anything you would like the audience to do after your presentation and this will happen."
Answer:
Explanation:
1)
dividend at (t = 1) given = 3.5
dividend at (t = 2) = 3.5 *(1 - 0.3) = 2.45
dividend at (t = 3) = 2.45*(1 - 0.3) = $1.715
so dollar amount of dividend at (t = 3) = $1.715
2)
value of the stock = present value of future dividends discounted at cost of capital(20%)
continuous value = dividend at (t = 3)[1+ growth] / K - g
= 1.715(1+3%) / 0.2 - 0.03
= 10.39
share price = 3.5 / (1.2) + 2.45 / (1.2)^2 + 1.715 / (1.2)^3 + 10.39 / (1.2)^3
= $11.62
3)
worth of the share as per calculation is $11.62 only. $11.75 is over priced so it is not recommended to buy
in case of 10% cost of capital
continuous value = dividend at (t = 3)[1+ growth] / K - g
= 1.715(1+3%) / 0.1 - 0.03
= 25.235
share price = 3.5 / (1.1) + 2.45 / (1.1)^2 + 1.715 / (1.1)^3 + 25.235 / (1.1)^3
= $25.45
since offer price of $11.75 is less than calculated value, we can buy the share.
