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3 years ago

Third Parties In General (not Just With Health Care) Are Inefficient Because

Business

1 answer:

goldenfox [79]3 years ago

3 0

Answer:

Third Parties In General (not Just With Health Care) Are Inefficient Because

b) it means a large bureaucracy.

Explanation:

Ordinarily, in an efficient market, there are no third parties. The market participants remain buyers and sellers. They are aided in their business dealings and for the determination of prices during the exchange by the invisible hand. It is the invisible hand that ensures the existence of market equilibrium between demand and supply. If this invisible hand is removed and a third party comes in to regulate the market and the activities of the market participants, usually the government, it implies that bureaucracy will increase. It has been established that decisions made by the state are not always efficient because more costs are added to the decision-making process.

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Salmon Inc. has debt with both a face and a market value of $227,000. This debt has a coupon rate of 7 percent and pays interest

Dahasolnce [82]

Answer:

14.27%

Explanation:

Unlevered value = [Expected earnings before interest and taxes × (1- tax rate)]/Unlevered cost of capital

Unlevered value = [$87,200 x (1- 0.35)]/0.12 = $472,333.33

Levered value = Unlevered value + (Tax rate × Debt market value)

Levered value = $472,333.33 + (0.35 x $227,000) = $551,783.33

Value of equity = Levered value - Debt market value

Value of equity = $551,783.33 - $227,000 = $324,783.33

Cost of equity = Unlevered cost of capital + [(unlevered cost of capital - coupon rate) × (Debt market value/Value of equity) × (1 - Tax rate)]

Cost of equity = 0.12 + [(0.12 - 0.07) × ($227,000/$324,783.33) × (1 - 0.35)] = 0.1427, or 14.27%

Therefore, the firm's cost of equity is 14.27%

7 0

3 years ago

Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100

mestny [16]

Answer:

A. 90

Explanation:

nominal GDP = 50*20 + 100*8 = 1800

real GDP = 50*10 + 100*15 = 2000

GDP deflator = (nominal GDP/ real GDP)*100 = (1800/2000)*100 = 90

5 0

3 years ago

Read 2 more answers

On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server

djverab [1.8K]

Based on the information given for Server Company, the machine will be valued a<u>t $42,000 </u>and the machinery account will be credited.

<h3>What would be the value of the machine?</h3>

The machine was sold on January 1, 20X9 and at that point, the accumulated depreciation was $28,000.

The value of the machine was therefore:

= Cost of machine - Accumulated depreciation

= 70,000 - 28,000

= $42,000

Find out more on accumulated depreciation at brainly.com/question/1287985.

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2 years ago

When managers make the most appropriate decision in light of what they believe to be the most desirable consequences for the com

ikadub [295]

Answer:

optimum

Explanation:

An optimum decision as defined in the question can be defined as the most appropriate decision taken by a manager in the light of what they to be the most desirable consequences for the company.

This simply means that when an event or occurrence takes place in a company, the managers have the responsibility to take the best decisions for the company. The best decision is therefore called the optimum decision; that is the highest level of decision that solves the problem with the smallest of consequences.

Cheers.

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3 years ago

Which one of the following statements correctly states a relationship?

Anon25 [30]

Answer:

Explanation:

i think

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3 years ago