A stock exchange is a place where stocks are bought and sold. This is known as trading stocks. A stock exchange can be a real, physical location (the building where trading takes place), but it can also be more of an idea, too.
Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.
Explanation:
Answer:
The maximum capital budget that is consistent with maintaining the target capital structure is $785,714
Explanation:
The computation of the maximum capital budget is shown below:
= Net income × (debt percentage ÷ equity percentage)
= $550,000 × (30% ÷ 70%)
= $235,714
The net income would be equal to equity i.e $550,000 as it reflect the maximum amount
So, the total and maximum amount of the capital structure would be
= $550,000 + $235,714
= $785,714
C. creates better and more services
