What is effective about the body (paragraphs 2 and 3) of the previous message?

What is one way a market economy affects the lives of private citizens

vovikov84 [41]

Freedom of individual choice is possible to the extent that the market provides options for work, developing a business, and purchasing goods and services (so long as you can afford them).

Hope this helps :)

3 0

3 years ago

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public. tariffs cost

valina [46]

Answer: cost

Explanation: In simple words, cost refers to the total amount of resources used by an organisation for preparing its relative commodity to sell it to the ultimate customer. It is the sum of expenses incurred for the generation of revenue.

It is the total outflow of resources,therefore , the producers often use it for setting prices so that they can generate the amount of profit they are targeting for.

Hence we can conclude that the correct answer is cost.

5 0

3 years ago

Hankins Corporation has 7.5 million shares of common stock outstanding, 275,000 shares of 4.7 percent preferred stock outstandin

yulyashka [42]

Answer:

7.98%

Explanation:

For computing the market value capital structure we need to do following calculations which are shown below:

Market value of stock = 7,500,000 × $62 per share = $465,000,000

Cost of Equity = Risk Free rate + Beta × Market risk Premium

= 3.4% + 1.10 × 7.2%

= 11.32%

Market value of Bond = 108% × $2,000 × 160,000 bonds = $345,600,000

Coupon = 5.6% × 2000 ÷ 2 = 56

Number of Periods(n) = 18 × 2 = 36

Market value = $2000 × 1.08 = $2160

Cost of debt (YTM) using excel formula is

= RATE(36,56,$2,000,-$2,160)

= 4.92%

Market value of Preferred Stock = 275,000 × $94 = $25,850,000

Cost of Preferred Stock = 4.7%

Total value = $465,000,000 + $345,600,000 + $25,850,000

= $836,450,000

Equity ratio = $465,000,000 ÷ $836,450,000 = 0.5559

Debt ratio = $345,600,000 ÷ $836,450,000 = 0.4132

Preferred Stock ratio = $25,850,000 ÷ $836,450,000 = 0.0309

Now the market capital structure is

Cost of Project = Equity Ratio × Cost of Equity + Debt ratio × ( 1-Tax rate) × Cost of Debt + Preferred Stock ratio × Cost of Preferred stock

= 0.5559 × 11.32% + 0.4132 × (1 -24%) × 4.92% + 0.0309 × 4.7%

= 7.98%

3 0

3 years ago

"A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less mon

Anika [276]

Answer:

Recession.

Explanation:

Recession is a time of slow economic activity.Businesses decrease production,unemployment rises and many consumers have less to spend.

5 0

3 years ago

Andrew is saving up money for a down payment on a car. He currently has $5470, but knows he can get a loan at a lower interest r

Flauer [41]

Answer:

2.79 quarters, so almost 3 quarters or 9 months

Explanation:

We write the equation, and solve it. To solve for x, as x is an exponent, we must use logarithms.

$5,470(1+0.048)^{X} = 6,253\\(1.048)^{X} = \frac{6,253}{5,470} \\(1.048)^{X} = 1.14\\XLog1.048 = Log 1.14\\X = \frac{Log1.14}{Log 1.048} \\\\X = 2.79\\$

8 0

3 years ago