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3 years ago

The United States enjoys a free market economy in which _____.

1 answer:

4 0

Free market means you can choose what path you want to take such as a career or future. therefore the consumers control the market. that is why share prices go up and down because of s and d. the suplly and demand comes from the consumer wanting to purchase and sell. Therefore a free market economy is an economy controlled by consumers

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Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the

Lemur [1.5K]

Answer:

Ke = Rf + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

8 0

3 years ago

Martha and Oleg are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them

ad-work [718]

Answer: Martha does not have a dominant strategy

Explanation:

A dominant strategy is one that a player can embark on and get the highest payoff regardless of the actions of their competitor.

In this scenario, there is no strategy that Martha can embark on that would provide the greatest payout regardless of Oleg's decision. If Martha advertises, Oleg makes the same amount advertising as well. If Martha does not advertise, Oleg would decide not to advertise as well and make the same amount.

Martha therefore has no dominant strategy as Oleg would make the same amount regardless of which decision is taken.

5 0

3 years ago

Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the appl

ra1l [238]

Answer:

a. True

Explanation:

TIE means times interest earned, whose formula is provided below:

Times interest earned=EBIT/interest expense

With the above formula, we can determine the EBIT (earnings before interest and tax)

Depending on the company's cost structure, when the operating costs are added to EBIT, the result would be the company's sales revenue

EBIT=Sales revenue-operating costs

Sales revenue=EBIT+operating costs

3 0

3 years ago

Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liabil

Llana [10]

The partnership most likely formed is a general partnership.

<h3>What is a general partnership?</h3>

A general partnership is when two or more people come together to form a business. The people who come together to create the business are referred to as partners.

In a general partnership, all the partners are responsible for the running the company. All the partners have an unlimited liability.

To learn more about partnerships, please check: brainly.com/question/9909227

4 0

2 years ago

Data concerning Bouerneuf Company's common stock follow:Book value oer share 24.00Market Value per share 18.00Earnings per share

natali 33 [55]

Answer:

Explanation:

Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows: