Answer:
The Archer Daniels Midland Company is an enormous conglomerate that grows and produces many food products. It is sometimes called the "supermarket to the world." The company has given large donations to politicians. If these donations affect policies regarding the environment or agricultural price supports, then these financial gifts are an example of rent seeking.
Explanation:
Rent seeking can be defined as an attempt of increasing profits without the contribution of productivity. In the corporate world, it involves the use of financial donations and bribes to politicians so that the politicians can manipulate the policies in their favor. It usually involves unjust favor to a business that has an interest in government-funded social services and programs. This concept was made popular in 1974 and generally meant the accumulation of wealth through shrewd means.
This concept was idealized by Adam Smith who defined rent as one of the sources of income. He stipulated that there are three major sources of income, namely; rent, wages and profit. He defined profit as the creation of more capital by risking capital. Wages were earned income, usually from employment. Rent is the utilization of resources to earn interest. Entities that have resources can sell, rent or lease to earn interest. Rent is usually the least riskiest way of earning income, thus it gained popularity tom mean receiving more benefits as compared to the associated costs.
In our case, Archer Daniels Midland Company utilizes it's access to capital to offer large donations to politicians with the aim of using the donations to manipulate policies regarding the environment or agricultural price supports in their favor.
Answer:
Detailed solution is given below in attached diagram:
Answer:
$46.90
Explanation:
The dividend in each year is the previous year's dividend multiplied by the growth factor, whereas the growth factor is 1 plus the expected growth rate of 10%, the EPS in each year would also be determined in a similar manner.
Note that the stock price is the present value of its dividends for 5 years as well as the price value of its year 5 share price(year 5 EPS*year 5 P/E ratio of 16)
Answer: $570000
Explanation:
The book-tax difference, that's associated with its federal income tax expense that Seatax should have reported when computing its year 1 taxable income will be $570000.
It should be noted that the $570000 for the book tax difference is permanent as it isn't reversible for.the next fiscal period.
