Answer:
At one time, the centrally planned economy of China encouraged farmers to produce iron in their backyards, rather than have factories make iron. This proved unsuccessful, since most of the farmers' iron was of poor quality. Why do you think this approach was unsuccessful? How could this experiment become a success in a free market economy?
The reason why the approach whereby farmers make iron in their backyard could not work out is as a result of not being inclined in that market as they are only skilled in agriculture, also they do not understand the rhetorics of the business.
The experiment would be a success in a free market as anyone is allowed to sell such product, this gives room for competition and helps to price reduction which is good for the consumers, also it would help in improvement of such product's quality because of competition involved
Explanation:
Federal tax rate = 10%
State tax rate = 4.3%
Social security = 6.2%
Medicare = 1.45%
Total deductions = 21.95%
Amount withheld = 21.95%*6727 = $1476.58
Answer:
P14 = $55.69545045394 rounded off to $55.70
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 is the dividend expected in Year 1 or next year
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded off to $1.67
Now using the equation for Price as provided by the DDM model,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded off to $55.70
Answer:
515,000
Explanation:
The Master-budget capacity utilization is the expected level of capacity which a current budget needs. The term utilization means the amount of capacity needed to meet customer demand.
In the future, Henry Inc estmates that customer demand is unlikely affected and will be around 515,000 pairs for their current budget. Therefore the master-budget capacity utilization level for this budget period is 515,000 pairs.
