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arlik [135]
2 years ago
8

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will

be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?
Business
1 answer:
kari74 [83]2 years ago
7 0

Answer:

The price you should be willing to pay for this stock= $24.86

Explanation:

To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore  50= xX1.15^5  by solving this equation we have  x= 24.86  . The price you should be willing to pay for this stock= $24.86

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Which one of the following is NOT one of the arguments against social responsibility as used by economist Milton Friedman?
777dan777 [17]

Answer:

B) Businesses can actually do very little in terms of social responsibility.

Explanation:

Milton Friedman is most famous for the defense of the Chicago School economics which is a neoclassical approach to macroeconomics. He favored free trade, smaller government and a slow but constant growth of the money supply. I personally disagree with neoclassical economists because they have the tendency to mess things up and time proves they are always wrong (that is a biased but positive statement). He was the father of monetarism, but if you look at his last two disciples, George Bush and George W. Bush, the outcome was not positive ⇒ 3 deep recessions in 3 presidential terms.

As a neoclassical economist, Friedman believed and argued in favor of the trickle down in economics. That means that if you allow the rich to get overwhelmingly rich, their riches will spill over to the rest of society. Not because they are good people that like to share their wealth, but because they need workers and employees to keep consuming goods and services in order to get the economy moving. Eventually the spilled over wealth should return to the top. So it is no wonder why he opposed corporate social responsibility, since wasting time and money in the community, employees or the environment was simply a waste of resources that could be used to increase stockholders' wealth.

I understand how theoretically this might work, but it takes the human factor out of the equation and expectations are extremely important in economics, that is why they always fail.

6 0
3 years ago
A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income
slava [35]

Answer:

9.63%

Explanation:

Calculation of Mutual Fund rate of return that the investor receive on the fund last year

Using this formula

Rate=(Fund's NAV -NAV per share +Income distributions+ Capital gain distributions )

Let plug in the formula

Where:

Fund's NAV =$19.14

NAV per share=$19.00

Income distributions=.57

Capital gain distributions =1.12

Hence

Rate =($19.14 - 19.00 + .57 + 1.12) / $19.00

=1.83/$19.00

=0.0963×100

Rate = 9.63%

Therefore without considering taxes and transactions costs, the rate of return that the investor receive on the fund last year will be 9.63%

5 0
2 years ago
Economists differ in their views of the role of the government in promoting economic growth. at the very least, the government s
viktelen [127]
<span>Economists differ in their views of the role of the government in promoting economic growth. at the very least, the government should lead the country.</span>
4 0
3 years ago
The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and
Serggg [28]

Full question attached

Answer:

D. Earnings before interest and taxes(EBIT)

Explanation:

Earnings before interest and taxes abbreviated EBIT in the income statement is arrived at by deducting operating expenses from revenue/sales to get operating income. The operating income is earnings before interest and taxes which comes before gross income(subtract other expenses). Operating expenses are the main expenses concerned with operations of the business such as the Sales

6 0
2 years ago
Madison Company issued an interest-bearing note payable with a face amount of $9,000 and a stated interest rate of 8% to the Met
castortr0y [4]

Answer:

zero

Explanation:

The activity in this scenario is fund raising/ issue note to a bank which is booked in financing activities, not in operating activities.

Thus we can said "there's no operating activity in Madison Company cash flow of 2016" if there's no other information.

7 0
3 years ago
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