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3 years ago

1.2.5 Quiz: Different Ways to Play

Business

1 answer:

sattari [20]3 years ago

8 0

Answer:

Property rights allow consumers and producers to make free choices .

Explanation:

A free market in an economic system is solely based on the market forces of demand and supply with minimum government intervention.

Property right is the authority of ownership that determines how a property can be put to an efficient use , thereby promoting efficiency.

This is necessary in a free - market system as it allows consumers and producer to make free choices , as the intervention of the government is at the minimal level.

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Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%, $100 par value cumulative preferred stock o

Alex787 [66]

Answer:

The divided for common stockholders is $152000

Explanation:

The preferred stock is cumulative whch means any arrears in preference dividend will be paid whenever the dividend is declared.

The amount of yearly preference dividends is = 12000 * 100 * 0.07 = 84000

Thus, when 320000 cash dividend is declared, 2 years ( current year and arrear year) preference dividend will be paid first and the remaining will be distributed among common stock holders.

The dividedn for common stockholders is 320000 - (84000 * 2) = $152000

4 0

3 years ago

Item 1 Lawrin is a real-estate salesperson whose compensation is commission-only. She earns a 3% commission on the sale price of

Lera25 [3.4K]

Answer:

Gross pay= $13,357.8

Explanation:

Giving the following information:

Gross commission= 3%

Sales= $445,260

The gross pay is the amount earned before tax and other deductions. We need to use the following formula:

Gross pay= commission rate*sales

Gross pay= 0.03*445,260

Gross pay= $13,357.8

7 0

3 years ago

Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.80. The required return on an index fund tha

navik [9.2K]

Answer:

3.5%

Explanation:

We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:

Cost of equity = Risk-free rate + Beta x Market risk premium

Putting all the number together, we have:

Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%

Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%

Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%

Note: You can also do quick calculation as below:

Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%

6 0

3 years ago

You are a consulting firm intern and your job is to help a client choose investment projects. Your client, RealEstate, is a youn

steposvetlana [31]

Answer:

(f)None

Explanation:

Pay back period is the no of years in which cost of investment is recovered in the form of cash flow.

Project with cash back period of two years is acceptable .

Project 1

initial outlay of fund = 100 million dollar

cash flow in first two years = 50+50 = 100 million dollar