Answer:
The characteristics of a mixed economy include allowing supply and demand to determine fair prices, the protection of private property, innovation being promoted, standards of employment, the limitation of government in business yet allowing the government to provide overall welfare, and market facilitation by the self-interest of the players involved.
Answer: Please refer to explanation
Explanation:
1.
The stock of money people hold to pay unpredictable expenses. <u>Precautionary Motive</u>
The stock of money people hold to take advantage of future changes in the prices of financial assets other than money. <u>Speculative Motive</u>
The stock of money people hold to pay everyday predictable expenses. <u>Transactionary Motive.</u>
<u>2.</u> This is an example of a decrease in Daesun's <u>Transactionary </u>demand for money.
Paying rent is a predictable everyday expense so it is Transactionary.
3. As the interest rate falls, the opportunity cost of holding money <u>falls</u> , and people <u>increase</u> their speculative balances.
The Opportunity cost of holding money falls because people will not be gaining such a high rate of return if they invest due to the lower interest rates so they can hold money with little repercussions. They will increase Speculative balances though to tak advantage when the rates go back up.
Answer:
The account will be worth $1,485,054.43 at the age of 18.
Explanation:
Giving the following information:
Lump sum= 120,000
Number of years= 18
Annual interest= 15%
To calculate the final value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
FV= 120,000*(1.15^18)= $1,485,054.43
The account will be worth $1,485,054.43 at the age of 18.
Answer: d. A price near $60
Explanation:
The Preferred Stock was selling at $56 then a notice was circulated that RMO would be calling the stock at a price of $60.
This $60 is more than the current $56 and so this will need to reflect in the price of the stock. The adjustment will cause the Preferred stock to start trading near $60 as traders will seek to take advantage of the impending call by buying at a lower price and thus making a bit of profit when the stock is called at $60. The market will adjust to this because the Preferred stock will be perceived as undervalued. A price closer to the Call price will therefore become the new price to properly value the stock.
<span>Numerator (Basic EPS): Net income = $650,000; Preferred dividends =
$40,000 [(10% x $100) x 4,000]. Because
the preferred stock is cumulative, dividends are included whether or not paid</span>
Denominator (Basic EPS):
Weighted average # shares common stock outstanding
1/1 – 12/31 440,000 x (12/12) = 440,000
10/1 – 12/31 16,000 x (3/12) = 4,000
Weighted average # shares 444,000
Basic EPS = ($650,000 - $40,000) ÷ 444,000 = $1.37