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3 years ago

Give an example of Government- created monopoly. Is creating this monopoly a bad public policy? Explain.

Business

1 answer:

mojhsa [17]3 years ago

7 0

Not really, because although it may be the law you can trade for your own beneficial-needs

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Donna Pierce manages a business that distributes imported woolen fabrics. Donna's business offers a 2.5% cash discount on any am

Damm [24]

Answer:

Donna Pierce

The unpaid balance is:

= $4,243.60.

Explanation:

a) Data and Calculations:

Cash discount on any amount paid within 10 days of the invoice = 2.5%

Sales value of Fabrics bought on January 28 by a client = $14,500

Check made by the client on February 1 = $10,000

Total amount paid through the check = $10,000/100-2.5%

= $10,000/0.975 = $10,256.40

Amount unpaid = $4,243.60 ($14,500 - $10,256.40)

Check:

2.5% discount on $10,256.40 = $256.40 ($10,256.40 * 2.5%)

4 0

3 years ago

Radverb Inc. paid a dividend of $2.00 last year. The company expects to increase the dividend at a constant rate of 2% per year,

Nezavi [6.7K]

<u>Solution and Explanation:</u>

The given ke = 0.08 , Ke = 8%

Now, the required return falls by half (by 50%)

Ke (revised) = 8 percent multiply with the 50 percent = 4%

The Price of Radvob’s stock = $2(1.02) / 0.04-0.02$ =$102

Do= $2

G=2%

The given Current price = $34

Ke= required return = ?

The Current price = $\mathrm{D}_{0}(1+\mathrm{G}) / \mathrm{K}_{\mathrm{e}}-0.02$

Ke=0.08 , Ke=8%

Now, the required return falls by half(by 5%)

Ke (revised) = 8 percent multiply with 50 percent = 4%

7 0

4 years ago

Suppose that a portfolio has a beta of 1.15. Over the period of one year, the portfolio had a return of 12.4% with a standard de

Darina [25.2K]

Answer and Explanation:

Given:

Weighted average β = 1.15

Average return (r) = 12.4%

Risk free return (Rf) = 1.2%

Market return (Rm) = 10.2%

Standard deviation (SD) = 16.2%

Computation of Jensen's α :

Jensen's α = r - [Rf + β(Rm - Rf)]

Jensen's α = 12.4% - [1.2% + 1.15(10.2% - 1.2%)]

Jensen's α = 12.4% - [1.2% + 10.35%]

Jensen's α = 12.4% - 11.55%

Jensen's α = 0.85%

Computation of Treynor's index :

Treynor's index (Ratio) = (r - Rf) / β

Treynor's index (Ratio) = (12.4% - 1.2%) / 1.15

Treynor's index (Ratio) = 11.2% / 1.15

Treynor's index (Ratio) = 9.73913043%

Treynor's index (Ratio) = 9.74% (Approx)

Computation of Sharpe's index :

Sharpe's index (Ratio) = (r - Rf) / SD

Sharpe's index (Ratio) = (12.4% - 1.2%) / 16.2%

Sharpe's index (Ratio) = 11.2% / 16.2%

Sharpe's index (Ratio) = 0.69 13%

5 0

4 years ago

Using the present value tables in Exhibits 26-3 and 26-4, Assume that the required rate of return for investment projects at Rip

ehidna [41]

Answer:

Explanation:

the required rate of return = 12%

if the present value of the project's cash flows after being discounted at the required rate of return = $120,000, then the net present value (NPV) of the project is negative. Future cash flows are discounted at the company's required rate of return, if they were discounted at a lower rate, their present value would be higher.

Any project with a negative NPV should be rejected because it doesn't provide enough cash flows.

5 0

3 years ago

Professor vanessa lazo received a free tour to costa rica in a drawing at a professional conference. Professor lazo has asked fo

Zarrin [17]

Answer: The fair market value of the free tour to Costa Rica is a taxable income.

Professor Vanessa Lazlo won the free tour in a draw, where a prize is awarded by chance.

Publication 525 of the IRS defines taxable and non taxable income.

The IRS lists winnings from raffles and lotteries under Other income.

It also declares that the fair market value of winnings from raffles and lotteries are winnings from gambling. Hence the fair market values of non cash prizes are taxable and must be included as income.

4 0

4 years ago