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g100num [7]
3 years ago
7

What role do businesses play in a free enterprise system?

Business
1 answer:
fenix001 [56]3 years ago
3 0

Answer:

C. They produce most available goods and services.

Explanation:

In A free market economy, the production of goods and services is done by the private sector. The government's participation in economic activities is limited. The private sector owns and controls the majority of the factors of production.  The private sector owns factories, manufacturing, and other businesses in the economy.

In the free market economy, profits are the primary motivating factors to engage in business. The private sector produces goods and services that will generate profits for the businesses.

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Suppose a state has the following individual income tax structure.The first $20,000 that an individual earns is taxed at 5%. The
blagie [28]

Answer: $6,000

Explanation: Considering the tax structure:

An employee with a total income of $60,000 will pay:

1st $20,000= $20,000*5%=$1,000

2nd $30,000= $30,000*10% = $3,000

Bal of $10,000= $10,000 * 20% = $2,000

Total Tax payable = $1,000+$3,000+ $2,000=$6,000

7 0
4 years ago
Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. Th
nadezda [96]

Answer:

$31.76 million

Explanation:

Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:

EVA=NOPAT-(WACC*invested capital)

NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)

Net income=Earnings before tax*(1-tax rate)

net income= $55 million

EBT=unknown

tax rate=40.0%

$55=EBT*(1-40.0%)

$55=EBT*0.60

EBT=$55/0.60

EBT=$91.67

EBIT=EBT+interest

EBIT=$91.67+$19

EBIT=$110.67

NOPAT=$110.67*(1-40%)

NOPAT=$66.41

WACC=9.0%

perating capital employed=$385

EVA=$66.41-(9.0%*$385)

EVA=$31.76 million

operating capital em

3 0
3 years ago
Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of
jek_recluse [69]
A and then d i’m pretty sure
7 0
4 years ago
Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $1.60 a share (i.e., D0 = $1.60
madam [21]

Answer:

$26.25

11.72%

Explanation:

Stock price next year = current price x ( 1 + growth rate)

$25 x (1.05) = $26.25

According to the constant growth dividend growth model :

P = D1 / ( r - g)

P = price of the stock

D1 = next dividend = current dividend x (1 +growth rate)

r = required rate of return

g = growth rate

$25 = $1.60 x ( 1.05) / r - 0.05

$25 = 1.68 / r - 0.05

$25 x ( r - 0.05) = 1.68

r = 0.1172

r = 11.72%

8 0
3 years ago
HURRY!!
Alenkasestr [34]
Forensic scientists
4 0
4 years ago
Read 2 more answers
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