<span>The quote captures Smith's description of the complexity and scope of the division of labor, and its ability to increase the standard of living in a given society. Smith believes that the propensity to truck, barter and exchange is part of human nature, and it is precisely this capacity that best organizes the economic system in large scale societies. The cooperation of the many thousands, inspired by each person's self interest, is what allows for the economic system to flourish, spreading opulence and raising the overall quality of life. Since observations on the progress inspired by the division of labor begin the book, Smith uses the contemplation of simple items (pins, for instance) as a starting point for his theorizing on the organization of economics in general.</span>
Answer: False
Explanation:
The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.
It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.
<span>Organizations known as Partnerships use the Form 1065 and Schedule K-1. A Partnership is an agreement between two partners to agree to work together to benefit each others interest. These organizations of Partnerships may be between individuals, governments, schools, etc.</span>
Answer:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Explanation:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Answer: inflation corrected or constant prices
Explanation:
Real gross domestic product is an inflation adjusted measure that reflects the value of all goods and services produced by a state economy in a year. It is often to as either constant dollar GDP, inflation corrected or constant prices
