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3 years ago

How do markets function in capitalist system ?

Business

1 answer:

mestny [16]3 years ago

5 0

Answer:

In a capitalistic society, the production and pricing of goods and services are largely determined by supply and demand the free market but some government regulation and oversight may occur. In contrast, a free market system is ruled entirely by demand and supply, and there is little or no government regulation.

Explanation:

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Create an outline of your paragraph about your participation in the economy this week. describe how you were a consumer or produ

Ber [7]

I contributed to the total supply of money in the economy because my demand for good and services were paid for using money and it made the supplier to have more resources with which he can manufacture or purchase more product so that consumers can purchase. In this my economic decision was using the money which I could have used for other purposes for the purchase of goods and services as I had to forgo something and also my account balance became reduced as a result of the decision i made

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3 years ago

Read 2 more answers

Marissa gives Larry a check in payment for a computer that she is buying from him. She writes the check to Cash. Larry then give

Lena [83]

Answer: personal

Explanation:

Based on the information given with regards to the question, this is a personal defense. A personal defense occurs when there's a breach of contract whereby there was issuing of the negotiable instrument.

In this case, Marissa writes the check to Cash but Larry then gives the check to Gary Graduate his nephew, without indorsing it, as a graduation gift

8 0

3 years ago

Rose has a $20,000 basis in the 60% of the Parent Corporation stock that she owns. Parent Corporation owns a 70% interest in Chi

Degger [83]

Answer:

The answer is: Rose will be taxed as receiving a $15,000 dividend distribution.

Explanation:

Since Parent Corporation owns 70% of Child Corporation, for tax purposes they are considered as one single firm. Rose is the main stockholder of Parent Co. so for tax purposes she is also a stockholder in Child Co. When Child Co. gives her $15,000 in exchange for Parent Co. stock, this would be considered as a dividend distribution rather a stock sale.

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3 years ago

Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The compa

EastWind [94]

Answer:

Explanation:

Let's first determine the free cash flow of the firm

Particulars Years

1 2 3

EBIT 540 680 750

Tax at 36% (0.36*540) (0.36*680) (0.36*750)

Less: 345.6 435.2 480

Net Capital -

Spending 150 170 190

Change in NWC 70 75 80

Less: 125.6 190.2 210

The terminal value at the end of T =(3 years) is:

$= \dfrac{Free \ cash \ flow}{unlevered \ cost - expected \ growth \ rate}$

$= \dfrac{250}{0.1643-0.04}$

$= \dfrac{250}{0.1243}$

= 2011.26

Finally, the value of the firm can be computed as follows:

Years Free Cash Flow PVIF PV

1 125.6 0.6589 107.88

2 190.2 0.7377 140.31

3 210 0.6336 133.06

Terminal Value 2011.26 0.6336 1294.33

Value of the firm ⇒ $1655.58

5 0

3 years ago

The Carla Vista Acres Inn is trying to determine its break-even point during its off-peak season. The Inn has 50 rooms that it r

SashulF [63]

Solution and Explanation:

Breakeven point = Fixed cost divide by Contribution margin

Contribution margin = Sales minus Variable cost.

Fixed cost

Particular Amount

Salaries $5000

Utilities $1100

Depreciation $1200

Maintenance $780

Total Fixed cost = $8,080.

Variable cost =Maid services plus Other cost = $7 plus $13 = $20

Contribution = $40 minus $20 = $20.

Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.

Breakeven point in $ = Breakeven point rented rooms × rent cost.

=> 404 rooms multiply $40 = $16,160.

8 0

3 years ago