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3 years ago

If a country espouses the principles of capitalism, but does allow the government to pass legislation that regulates

Business

1 answer:

Stels [109]3 years ago

5 0

Answer:

modified capitalism.

Explanation:

Capitalism is defined as an economic and political structure where factors of production are controlled by private individuals aimed at gaining profit. The state does not have control of trade and industry.

However in modified capitalism the government has some level of control which they exercise by regulating business activities to some extent.

On the other hand in pure capitalism all decisions related to trade and industry are determined by only private entities

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According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, r s , can be estimated by adding a r

Masja [62]

The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.

The premium approach does help to determine the value of an assetof a company's such as its traded equity.

However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

Read more about the premium approach:

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2 years ago

Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2376 6-months forward 1.2357

gladu [14]

Answer:

A. 3.00%

B. 2.99%

C. 2.99%

Explanation:

A. Calculation to determine What must the six-month risk-free rate be in Australia

As per Interest Rate Parity:-

Forward Rate/Spot Rate = Interest in Australia/ Interest In USA

1.2357/1.2376=Interest in Australia/0.03

Hence,

Interest in Australia=1.2357*0.03/1.2376

Interest in Australia= 2.995%

Interest in Australia=3.00%

Therefore What must the six-month risk-free rate be in Australia is 3.00%

B. Calculation to determine What must the six-month risk-free rate be in Japan

Forward Rate/Spot Rate = Interest in Japan/ Interest In USA

100.0600/ 100.3200 =Interest in Japan/0.03

Hence,

Interest in Japan =100.0600 *0.03/ 100.3200

Interest in Japan= 2.99%

Therefore What must the six-month risk-free rate be in Japan is 2.99%

3. Calculation to determine What must the six-month risk-free rate be in Great Britain

Forward Rate/Spot Rate = Interest in Great Britain/ Interest In USA

.6780 /.6793=Interest in Great Britain/0.03

Hence,

Interest in Great Britain= .6780*0.03/0.6793

Interest in Great Britain=2.99%

Therefore What must the six-month risk-free rate be in Great Britain is 2.99%

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3 years ago

A purchase of books in the college bookstore is ___________. the report at the end of the day showing sales totals for the day i

mixas84 [53]

B, Hope I helped :):):):):)

6 0

3 years ago

Read 2 more answers

Coca-Cola launched 500 drinks around the world, some of which are truly unique. The Indian Coke subsidiary launched a chunky man

Artist 52 [7]

The strategy that used by Coca-Cola in the scenario is known as multidomestic strategy.

<h3>What is a multidomestic strategy?</h3>

A multidomestic strategy simply means an international strategy that chooses to focus on advertising and commercial efforts regarding the sale of a product.

In this case, the The Indian Coke subsidiary launched a chunky mango juice. This is an example of a multi domestic strategy.

Learn more about multidomestic strategy on:

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3 years ago

On December 31, the company purchases equipment for $10,000 and pays for the purchase in cash. Complete the necessary journal en

Vladimir [108]

Answer:

Date General Debit Credit

$ $

Dec 31 Equipment 10000

Cash 10000

Following are detail of the posting of equipment purchased

1) The $10,000 will be posted to the debit side of the Equipment Account.

2) The $10,000 will be posted to the credit side of the Cash Account

7 0

3 years ago