All categories

2 years ago

HELP ASAP

1 answer:

6 0

The three basic question of economic is

What to produce

How to produce

For whom to produce

Therefore the answer would be

1.How will the goods and service be produced

2.How will the goods and service be produced

3.Who will consume the goods and services

You might be interested in

Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income

melamori03 [73]

Answer:

The company's stock price today should be $71.17 per share.

Explanation:

The corporate valuation model approach can be used to estimate this by using the following steps:

Step 1: Calculation of the free cash flow

Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:

Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure

For this question, we therefore have:

Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million

Step 2: Calculation of Value of operations (Vo)

Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million

Step 3: Calculation of the Firm value

Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million

Step 4: Calculation of value of equity

Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million

Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.

Step 5: Calculation of stock price per share today

Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share

Therefore, the company's stock price today should be $71.17 per share.

7 0

3 years ago

05) Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What

Kay [80]

Answer:

Explanation:

a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.

This would: make output to remain unchanged, real interest to increase and current price level to increase as well.

b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.

C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.

d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.

4 0

3 years ago

On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2018, the company

attashe74 [19]

Answer:

The Journal entry is as follows:

On July 1,

Cash A/c Dr. $439,200

Finance charge Expense A/c Dr. $10,800

To Financing arrangement A/c $450,000

(To record the amount of borrowings)

Workings:

Finance charge expense = ($600,000 × 1.8%)

= $10,800

So, cash account = $450,000 - $10,800

= $439,200

4 0

3 years ago

Which statement BEST reflects an accurate and negative consequence of government regulatory practice on the economy?

zhenek [66]

Answer: it’s D

Explanation:

6 0

3 years ago

Read 2 more answers

Varieties of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either hom

Tresset [83]

Answer:

Market control by a few large firms

Difficult entry

Mutual interdependence

Explanation:

In the case of oligopoly as we know that there are very little large firms and each kind of firm generates the important portion of the total output. So each market have the market control

Also the main reason behind the barrier with regard to new firm entered is the barrier for the few firms. The reasons like patents, large capital needed are some reasons that makes it difficult for entering

In addition to this, they are mutual interdependent. This implies that the one firm action would impact the other firm action and according to this, the price and the level of output would be determined

Hence, the above represent the answer

6 0

3 years ago