Answer:
Economic systems as a type of social system must confront and solve the three fundamental economic problems: What kinds and quantities of goods shall be produced, "how much and which of alternative goods and services shall be produced?" How shall goods be produced? ..by whom and with what resources
Answer:
B. No, because the advertisements are an invitation to bid.
Explanation:
An advert is not legally binding as it is just a means to capture consumer attention and convince them to buy a product or service.
Advertisements are merely considered as invitations to bid so the one made by Neti-pot Co is misleading because anybody reading it will immediately assume if a consumer takes the product the way it is advertised and begin to get side effects, the company will really give out the $100 promised.
Therefore, Sheldon wont get any compensation even if she decides to sue.
She will have to bear the consequences alone.
Answer:
$20
Explanation:
Price / earnings per share = 10
earnings per share = $2
price / $2 = 10
Price = $20
Answer:
The intrinsic value of A -$44.57 is higher than that of B- $ 29.71
Explanation:
<em>The intrinsic value is the present value of he expected future dividend discounted at he required rate of return.</em>
<em>So, we would work out the intrinsic value of the two stocks using the the formula below:</em>
Intrinsic value = D× (1+r)/(k-g)
Intrinsic value of stock A
D-3, r-11%, g-4%
= 3 ×(1.04)/(0.11-0.04)
=$44.57
Intrinsic value of stock B
D-2, r-11%, g-4%
= 2 ×(1.04)/(0.11-0.04)
= $29.71
Answer: a. 80% stocks, 20% bonds
Explanation:
Stocks are a better fit for young people for 2 reasons;
1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.
2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.
Fixed income is more for the older generation so that they may be sure of stable income while they are in retirement.
At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.
