Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the given data are as follows:
Television cost = $100
Tax imposed = $5
So, we can calculate the minimum willingness to pay to buy television can be concluded by taking following observation:
- As the minimum amount of the television without taxes is $100 So, the minimum amount we will take is $100.
- While after new excise tax law the maximum amount that should be payable to buy television is ($100 + $5 = $105) $105. So, the maximum amount we will take is $105.
Hence, the amount that should be pay to buy the television should be between $100 and $105.
Answer:
The interest rate is 7.83%
Explanation:
The winner price in the year 1895 = $190
The winner price in the year 2014 = $1490000
Time duration between, 2014 – 1895 = 119 years
Now we have to find the interest rate at which the winner price has been increased. Thus, use the below formula to find the interest rate.
Future value = present value (1+ r)^n
Future value = $1490000
Present value = $190
n = 119
Now insert the values in the formula.
1490000 = 190(1 + r)^119
1490000 / 190 = (1+r)^119
r = 0.07826 or 7.83%
The saving-borrowing-investing cycle starts with the person borrowing funds to start a business. This is their seed capital to purchase and invest in the future. Then if the business grows, they'll be able to bring back the borrowed funds. The cycle continues. I hope this answer helped you.
Answer:
a. $3.18 x 18 = $57.24
b. $3.18 x 21 = $66.78
Explanation:
PE ratio is Price-to-earning ratio which is a quick and widely-used ratio to determine a compay stock's price.
PE ratio of a company stock is determined as the current market price of a company stock divided by earning per stock of a company which is total profit of a company divided by total number of outstanding common share.
To determine the valued stock is undervalued or overvalued, usually there is a benchmark PE which is the PE of its comparison company or of the index ( e.g: company within the same industry, Dow Jones index). If the PE of a valued stock is higher than its comparision meaning the valued stock is overvalued and vice versa.
The underlying concept is that a valued stock should be of the same value as the comparison stock as we compare the profit per common share the two stocks bring about.
PE ration is a quick, yet too simple to be applied alone in stock valuation as the approach ignore many material factors in stock valuation such as cashflow of the firm, the inherit of the valued company.
Answer:
a. True.
b. False.
c. True.
d. False.
Explanation:
The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world. It is an international economic organizations that is involved in fostering global economy and trade between countries.
a. True: The WTO was formed by countries that conduct the majority of international trade.
b. False: The WTO seeks to increase import quotas and reduce import and export tariffs. Actually, WTO seeks to eliminate or reduce import quotas and reduce import and export tariffs.
c. True: The WTO seeks to eliminate restrictions on the flow of money between countries.
d. False: Though it can hear accusations, the WTO cannot order remedies. Actually, WTO can both hear accusations and order remedies.
