Answer:
Capitalism is an economic system based on investing money in the expectation of making a profit. The means of production are usually privately owned by private entrepreneurs who often use wage labor to create added value. In doing so, they enjoy a great deal of legal freedom to dispose of these means, free enterprise production. This freedom also means that there is competition, which means that entrepreneurs have an interest in increasing the efficiency of their company. Hence, the capital owner will not fully consume the profit but reinvest in the business and capital accumulation takes place. The distribution of products is regulated by the market, in which the role of the government is, in principle, limited to that of market master.
Answer: $297,353.33
Explanation:
In calculating the Opportunity Cost of using that space with the available data, the following formula can be used (notice that APR is a yearly figure and the rent is monthly),
Opportunity cost = Rent per month *12* (1-tax rate) / APR
= $3,431.00 * 12 * ( 1 - 0.35) / 0.09
= 297353.333333
= $297,353.33
$297,353.33 is the opportunity cost of using this space.
Note the method used above is the faster method but if you want to use the other method, first you change the rent to a monthly figure. Then you divide it by the cost of capital to get the present value. Then you multiply by the After tax rate of (1 - tax rate). It's basically the same as the above though.
Answer:
This question is incomplete since the interest rate is not included and so is the requirement. However, if it asking for the annual contributions Bonnie can make, you can calculate it as shown below and assuming a discount rate of 10%;
Explanation:
Since Bonnie's goal is $300,000, this will be the future value and you can use a financial calculator to solve for recurring deposits (PMT);
Time to retirement; N = 12
Interest rate; I/Y = 10%
Future value; FV = 300,000
One time present cashflow; PV = 0
then compute the recurring deposits; CPT PMT = 14,028.995
Therefore, she will need to contribute $14,029 every year to meet her goal.
<span>
<span>In
investment, the term risk can be defined as the possibility of the investor
losing all or part of their capital in a given venture. High quality bonds
are considered lower risk because the the investor is promised to receive
face value after a certain period unlike stocks that do not carry the same
promise. Returns on high quality bonds are also guaranteed in the form of
fixed interest rates whereas in stocks, a company may pay dividends but this
is not an obligation on their part. Lastly bonds are safer investment as they
are less susceptible to abnormal price changes unlike stocks whose prices can
easily swing in either direction.</span></span>
Answer:
c)
Explanation:
Based on the information provided within the question it can be said that this worry stems from the concern that TV networks could be charged with deception of the public by failing to disclose the details of product-placement deals. This is due to the fact that if the network does not tell the public the details of the product deals or even that they are being sponsored, then a consumer might buy the product under the impression that it is a good product when in fact, the network is up-selling it. Therefore it is a form of false advertising.
