Answer:
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.Market economies range from minimally regulated free-market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.
Among the following <span>options for saving money that typically offers the least liquidity, (A) Savings Bond is the correct answer. The term that is being referred here which 'least liquidity' means that you or any other person can not withdraw any money at any time they want.</span>
Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Answer:
16
9.8
12.90
5.8
Explanation:
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm
price to earning ratio = market value per share / earnings
1 = 176/11 = 16
2. 78.40 / 8 = 9.8
3. 77.40 / 6 = 12.90
4. 203/35 = 5.8
Answer:
$22,780
Explanation:
The computation of the total amount of indirect manufacturing cost incurred is shown below:
= Variable manufacturing overhead + fixed manufacturing overhead
where,
Variable manufacturing overhead = Number of units produced × variable manufacturing overhead per unit
= 4,600 units × $1.30
= $5,980
Fixed manufacturing overhead = Number of units produced and sold × fixed manufacturing overhead per unit
= 5,600 units × $3
= $16,800
So, the total indirect manufacturing cost is
= $5,980 + $16,800
= $22,780