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2 years ago

Your friend is a business owner in a planned economy. In a few sentences, explain how central authority impacts his business.

Business

1 answer:

loris [4]2 years ago

7 0

Answer with Explanation:

A "Centrally Planned Economy" refers to an economy where the government's authority affects the economic decisions of the business owners. This means that the business owners and the consumers do not have a say when it comes to their decisions regarding the supply and demand of the items.

This also means that the business owner cannot decide on what product he will be producing, including its process of production and distribution.

Additional Explanation:

Although the command economy signals a lack of freedom for business owners, it has some advantages as well. It results to low unemployment level. The government has the ability to set the number of workers that the business owners will hire in order to address the unemployment rate. Products and services that will be produced are all directed for the good of the people. It is not "profit-driven."

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Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change

Scorpion4ik [409]

Answer:

so cost of capital = 9.9 %

correct option is a 9.9%

Explanation:

given data

capital structure = 40%

common equity = 60%

tax rate = 34%

pretax cost = 8.5%

pretax cost = 10%

market price = $59

Flotation costs = $3 per share

common stock dividend = $3.15

Dividends expected to grow = 7%

to find out

cost of capital if the firm uses bank loans and retained earnings

solution

cost of retained earning = $\frac{dividend* ( 1+growth rate )}{stock price}$ + growth rate ........................1

cost of retained earning = $\frac{3.15 * ( 1+0.07)}{59}$ + 0.07

cost of retained earning =0.1271271186

and

cost of capital will be

cost of capital = weight for debit × ( cost of debit × ( 1 - tax rate ) ) + weight for common stock × cost of common stock

cost of capital = 0.40 × ( 8.5% × ( 1 - 0.34 ) ) + 0.60 × 0.1271271186

cost of capital = 0.0987

so cost of capital = 9.9 %

correct option is a 9.9%

6 0

2 years ago

Management wants to build a culture where employees keep security in mind. Employees should be able to access information freely

Pavel [41]

Answer: Posters promoting good security behavior and designated mailing list.

Explanation:

One of the ways to create awareness in people's mind is by posting images, writings on walls and boards for their veiwing, when this is done over a period of time, they get conformed in their minds to adjust to what they've been seeing, another way is by designated emails, especially coming from the organization, through this emails, they can give their suggestions and complains also on what they feel or want to be done in the organization.

6 0

2 years ago

Let's say that you choose to buy bread in a grocery store. According to the marginal benefit and marginal cost principle, how ma

snow_lady [41]

Six is your answer because if it cost $2.00 and you have 4 it makes sense

8 0

1 year ago

Wrongful Discharge. Stephen Fredrick, a pilot for Simmons Airlines Corp., criticized the safety of the aircraft that Simmons use

kogti [31]

Answer:

Really want to help but I cant . Maybe next time I can help Maybe not but because we dont meet again

By the way .... this Virus.

mmuah thabks for the points

7 0

1 year ago

Patrick Rach International issued 5% bonds convertible into shares of the company's common stock. Rach applies U.S. GAAP. Upon i

Ludmilka [50]

Answer:

The correct answer is letter "B": The proceeds of the bond issue entirely as debt.

Explanation:

Under the U.S. General Accepted Accounting Principles (GAAP) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the effective interest method or the straight-line method.

6 0

2 years ago