Answer:
Explanation:
Based on the information provided within the question it can be said that this scenario has led to the United States adding more planned elements to the economy. They are doing this in order to prevent the market from hitting a pure market economy and remaining balanced towards a more planned economy.
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An economic system is characterized by public ownership of the means of production, the pursuit of collective goals (rather than market-oriented production), and centralized decision making is called "command economy (socialism)."
<h3>
What is command economy (socialism)?</h3>
A form of command economy is socialism. The majority of the production factors, including land and capital goods, are owned and under the jurisdiction of the state.
Key features of command economy are-
- A populist economic and political structure, socialism is founded on the common, collective, or public ownership of the means of production.
- The equipment, resources, and manufacturing facilities utilized to create products that are intended to directly meet human needs are among those means of production.
- The state uses central planning.
- The state maintains centralized control over the production of products and services, as well as their prices and distribution.
- While free-market economies have historically been identified with capitalism and democratic countries, command economies have historically been connected with socialist and communist countries.
Socialism the best economic system because-
- Theoretically, socialism aims to create the greatest amount of common wealth through public benefits.
- Since the government oversees the majority of societal activities, it can utilize resources, labor, and lands more efficiently.
- Socialism lessens wealth disparity not only between different regions but also between all social classes and ranks.
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Answer:
$15.45
Explanation:
For computing the intrinsic value of a share first we have to determine the required rate of return and the growth rate which is shown below:
Required rate of return is
= Risk free rate of return + Beta × (Market rate of return - required rate of return)
= 7.5% + 2.1 × (17% - 7.5%)
= 27.45%
Now the growth rate is
= Risk free rate of return × Return on equity
= 0.75 × 15%
= 11.25%
Now the intrinsic value of a share is
= Dividend × (1 + growth rate) ÷ (required rate of return - growth rate
= $2.25 × 1.1125 ÷ (0.2745 - 0.1125)
= $2.50 ÷ 0.162
= $15.45
It refers to the modification of the constitution of a nation or state.
