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Maurinko [17]
3 years ago
14

The material wealth of society is determined by the economy's _________, which is a function of the economy's _________. a. inve

stment bankers; b. financial assets investment bankers; c. real assets productive capacity; d. financial assets productive capacity; e. real assets
Business
1 answer:
Yakvenalex [24]3 years ago
7 0

Answer:

The material wealth of society is determined by the economy's productive capacity, which is a function of the economy's real assets.

Explanation:

Production capacity or <em>productive capacity</em> is the maximum level of activity that can be achieved with a given productive structure. The study of capacity is essential for business management in that it allows analyzing the degree of use made of each of the resources in the organization and thus have the opportunity to improve them.

<em>Real assets</em> are physical assets that have value due to their substance and properties. Real assets include precious metals, raw materials, real estate, agricultural land, machinery and oil. They are appropriate for inclusion in more diversified portfolios due to their relatively low correlation with financial assets such as stocks and bonds.

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[30 PTS + BRAINLIEST]
saw5 [17]

Answer:

C

Explanation:

A farmer would want to look at the economic status of the US because his goal is to sell as much wheat as possible and make the most profit. If he pays no attention to the economy and there's a recession but he still sells his wheat at the normal price, people whose stocks are going down and who are losing money will be unable to, and unwilling to, pay the price. Thus, the farmer must inspect the changing economic statuses of the US to determine the best and most effective way to market out his wheat to the public.

Changes in US racial patterns have no impact on the marketing of the farmer's wheat, so A is incorrect.

The number of births per year is also irrelevant, as is the general population growth numbers because these do not affect the way the farmer will market his crops, so B and D are incorrect.

Hope this helps!

3 0
3 years ago
Read 2 more answers
Vertical cooperative advertising is usually legal, except when: unquantifiable emotional appeals are involved. a representation,
mixas84 [53]

Vertical cooperative advertising is usually legal, except when bogus advertising allowances are given in the form of hidden price concessions.

3 0
3 years ago
Sorenson LLC, a publicly traded company, has ten members on its board. Of the ten members, six members are employees of the comp
Vesnalui [34]

Answer:

D. 7

Explanation:

Based on the information provided within the question it can be said that they need to appoint a total of 7 outside board members to achieve board independence. This is because in order to achieve board independence the board needs to consist of more members that are not employees than those who are. This is because votes need to be made in accordance to what is best for the company and shareholders, which may not always be best for the employees. Therefore when voting the employees may be biased.

8 0
3 years ago
Instructions: Please make sure that you show all your work when solving the problems. Feel free to make any assumptions whenever
My name is Ann [436]

Answer:

Explanation:

From the given information:

The current price = \dfrac{Dividend(D_o) \times (1+ Growth  \ rate) }{\text{Cost of capital -Growth rate}}

15 = \dfrac{0.50 \times (1+ Growth rate)}{8\%-Growth rate}

15 \times (8 -Growth \  rate) = 0.50 +(0.50 \times growth  \  rate)

1.20 - (15 \times Growth \ rate) = 0.50 + (0.50 \times growth \ rate)

0.70 = (15 \times growth  \ rate) \\ \\ Growth  \ rate = \dfrac{0.70}{15.50} \\ \\ Growth  \ rate = 0.04516 \\ \\ Growth  \ rate \simeq 4.52\% \\ \\

2. The value of the stock  

Calculate the earnings at the end of  5 years:

Earnings (E_o) \times Dividend \  payout  \ ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%} \\ \\ = \$1.42857

Earnings (E_5) year \  5  = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year \  5  = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \ 5  = \$2.51763

Terminal value year 5 = \dfrac{Earnings (E_5) \times (1+ Growth \ rate)}{Interest \ rate - Growth \ rate}

=\dfrac{\$2.51763\times (1+0.04516)}{8\%-0.04516}

=$75.526

Discount all potential future cash flows as follows to determine the stock's value:

\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 +Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no\ of\ years} }

+ \dfrac{Terminal\ Value }{(1+interest \ rate )^{no \ of \ years}} \Bigg)

\implies \bigg(\dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}}  + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$75.526}{(1+8\% )^{5}} \bigg )

\implies \bigg(\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$75.526}{1.4693} \bigg)

=$ 54.1945

As a result, the analysts value the stock at $54.20, which is below their own estimates.

3. The value of the stock  

Calculate the earnings at the end of  5 years:

Earnings (E_o) \times Dividend payout ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%}\\ \\ = \$1.42857

Earnings (E_5) year  \ 5  = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year  \ 5  = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \  5  = \$2.51763 \\ \\

Terminal value year 5 =\dfrac{Earnings (E_5) \times (1+ Growth \ rate)\times dividend \ payout \ ratio}{Interest \ rate - Growth \ rate}

=\dfrac{\$2.51763\times (1+ 7 \%) \times 20\%}{8\%-7\%}

=$53.8773

Discount all potential cash flows as follows to determine the stock's value:

\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 + Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no \ of\ years} }+ \dfrac{Terminal \ Value }{(1+interest \ rate )^{no \ of \ years }}   \bigg)

\implies \bigg( \dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}}  + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$53.8773}{(1+8\% )^{5}} \bigg)

\implies \bigg (\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$53.8773}{1.4693} \bigg)

=$39.460

As a result, the price is $39.460, and the other strategy would raise the value of the shareholders. Not this one, since paying a 100% dividend would result in a price of $54.20, which is higher than the current price.

Notice that the third question depicts the situation after 5 years, but the final decision will be the same since we are discounting in current terms. If compounding is used, the future value over 5 years is just the same as the first choice, which is the better option.

The presumption in the second portion is that after 5 years, the steady growth rate would be the same as measured in the first part (1).

8 0
3 years ago
Which of the following best explains why unions give workers more power in contract negotiations? A. Employers aren't legally al
hram777 [196]

Option D

Employers can't fire an entire union because of the difficulty of replacing every worker best explains reason for unions give workers more power in contract negotiations

<h3><u>Explanation:</u></h3>

One of the numerous significant advantages of getting collectively with your co-workers to create a union is obtaining the accuracy and protection of a union contract. A union contract is a printed contract among the employer and the employees that describes the phases and advantages in a sinless and legally-binding way.

The ability to be capable to recommend policy reforms or raise problems with a company as a whole preferably of just practicing them alone to a manager. A contract is not deemed to be in force till the membership has voted to approve it.

5 0
3 years ago
Read 2 more answers
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