Answer:
$2,010
Explanation:
The future value of the savings account in 6 years can be computed using the below future value formula:
FV=PV*(1+r)^n
FV=unknown future amount
PV=current worth of the savings account=$1,200
r=annual interest rate=5%
n=number of years envisaged=6
FV=$1,500*(1+5%)^6
FV=$1,500*(1.05)^6
FV=$1,500*1.3400956
FV=$2,010
The proposed response of Adam Smith based on each scenario is given below:
<h3>Scenario 1</h3>
He would say that the pricing system should remain the main determinant of the market and the interference of the government was uncalled for.
<h3>Scenario 2</h3>
He would side with the free market system and be an opponent of the law that frowns on importation.
<h3>Scenario 3</h3>
He would support the suspension of the antitrust laws.
<h3>Scenario 4</h3>
He would believe that markets should not be regulated and the free market system should continue.
<h3>Who is Adam Smith?</h3>
He is the father of modern economics for his work in pioneering ideas such as free trade and the gross domestic product
Hence, we can see that the proposed response of Adam Smith based on each scenario is given above.
Read more about Adam Smith here:
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Answer:
c. believe in the use of fiscal policy to stabilize the economy.
Explanation:
According to Keynesian theory, the sum of some micro-economic behaviors of all individuals and businesses results in inefficiency and the economy operates at a level below its potential output and growth. When total demand for products is insufficient, the economy enters a crisis and unnecessary unemployment arises due to defensive behavior of the producers. In such cases, the government may pursue policies to increase aggregate demand, and as a result may accelerate economic activities and reduce unemployment. Most Keynesian propose policies to stabilize the business cycle. For example, when the unemployment level is too high, the state can pursue a growth-oriented monetary policy. , one of the most famous of his critiques, Keynes argues and did not agree with "The Laissez-faire" that he opined the doctrines of laissez-faire are dependent on some extent on a case-by-case basis.
Answer:
c. $20,416.50
Explanation:
Cost of assets = 20,000
Depreciation year 1 = 33% * 20,000 = $6,666
Annual cost saving = 25,000
Tax rate = 25%
Operating cash flow Year 1 = Cost saving*(1 - tax) + Tax*Depreciation
Operating cash flow Year 1 = 25,000*(1-0.25) + 0.25*6,666
Operating cash flow Year 1 = 25,000*0.75 + 0.25*6,666
Operating cash flow Year 1 = 18750 + 1666.5
Operating cash flow Year 1 = $20,416.5
So, the cash-flow from the project in year 1 is $20,416.50
Answer:
Results in a transfer of retained earnings to common stock and additional paid-in capital.
Explanation:
A stock dividend can be defined as the dividend which is distributed to shareholders on the basis of their percentage of ownership. Stock dividend is paid in form of shares and not in form of cash.
A stock dividend can also be described as a dividend payment paid by a company to its existing stakeholders from the profit or earnings that has been derived from the company during a financial year period.
The main advantage of stock dividend is that taxes will not be paid on the stock dividends until the shares have been sold.
