All categories

3 years ago

Why is it important to understand business and economics?

Business

1 answer:

artcher [175]3 years ago

7 0

Because in the future you will need to learn that especially if you want to have your own business

You might be interested in

The up and coming corporation's common stock has a beta of 1.05. if the risk-free rate is 5.3 percent and the expected return on

Ugo [173]

Cost of equity is calculated as -

Cost of equity = Risk free return + Beta * (Market risk - Risk free return)

Given,

Risk free return = 5.3 %

Market risk = 12 %

Beta = 1.05

Cost of equity = 5.3 % + (1.05*(12-5.3%))

Cost of equity = 12.335 % or 12.24 %

6 0

3 years ago

The capitalized cost of any investment may be determined using the equation P = A/i where P is the capitalized cost, A is the an

statuscvo [17]

Answer: True

Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.

Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value is retained in the form of a fixed or intangible asset.

The capitalized cost of any investment can be determined using the equation, P = A/i. Where P is the capitalized cost, A is the annual amount and i is the interest rate.

7 0

3 years ago

High valley antiques would like to issue new equity shares if its cost of equity declines to 10.5 percent. the company pays a co

True [87]

The price of the share would be calculated as -

Price of share = Annual constant dividend / Cost of equity

Given, cost of equity = 10.5 %

Annual constant dividend = $ 1.60

Price of share = $ 1.60 ÷ 10.50 %

Price of share = $ 15.238 or $ 15.24

8 0

3 years ago

One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per

jekas [21]

Answer: Number of months = 66.87 months

Explanation:

Given that,

Monthly Payment = $500

Interest rate(r) = 1.95% per month

Current Balance = $18,500

Number of months(t) = ?

$Current\ balance = Monthly\ payment\times(\frac{1-present\ value\ factor}{r})$

$Current\ balance = Monthly\ payment\times(\frac{1-\frac{1}{(1+r)^{t}} }{r})$

$18,500 = 500\times(\frac{1-\frac{1}{(1+0.0195)^{t}} }{0.0195})$

$\frac{18,500}{500}\times0.0195=1-\frac{1}{1.0195^{t} }$

$\frac{1}{1.0195^{t}}=1-0.7215$

$1.0195^{t}=\frac{1}{0.2785}$

$1.0195^{t}=3.5906$

Taking log on both side

t log(1.0195) = log(3.5906)

$t = \frac{0.5551}{0.0083}$

t = 66.87 months

6 0

3 years ago

a power company decides to use wind turbines to provide electricity instead of coal. which basic economic question does this dec

Rufina [12.5K]

How will goods or services be produced? is the basic basic economic question does this decision answer in a free market economy.

<h3>What is a Market economy?</h3>

In a market economy, firms and individuals interact to determine how much goods and services should cost and how to best allocate scarce resources. This word often refers to an economy that is more market oriented overall, however there may be some government intervention or central planning.

Classical economists like Adam Smith, David Ricardo, and Jean-Baptiste Say created the theoretical framework for market economies. These traditional liberal proponents of the free market thought that the "invisible hand" of the profit motive and market incentives typically led economic decisions in directions that were more productive and efficient than government economic planning.

Learn more about market economy

brainly.com/question/11471834

#SPJ4

6 0

1 year ago