iron manufacturers made two announcements concerning its common stock today. first, the company announced that the next annual dividend will be $2.10 a share. secondly, all dividends after that will increase by 2.5 percent annually. what is the maximum amount you should pay to purchase a share of this stock today if you require a 10 percent rate of return?
Answers
Answer : The maximum amount you should pay to purchase a share of this stock today if you require a 10 percent rate of return is $28.00.
To determine the maximum amount you should pay to purchase a share of this stock today if you require a 10 percent rate of return, the first step is to find the current price of the stock. This can be found using the dividend discount model, which calculates the intrinsic value of a stock based on its future dividend payments. The formula for this is:
Price = D / (r - g)
Where: D = the next annual dividend ($2.10), r = the required rate of return (10%) and g = the growth rate of dividends (2.5%)
Plugging in the values given in the problem, we get:
Price = 2.10 / (0.10 - 0.025)
Price = 2.10 / 0.075
Price = $28.00
Therefore, the maximum amount you should pay to purchase a share of this stock today if you require a 10 percent rate of return is $28.00. This is because the current price of the stock is equal to its intrinsic value, based on the expected future dividend payments. If the stock is currently trading at a higher price, it is overvalued and should be avoided. If it is trading at a lower price, it may be undervalued and could be a good investment opportunity.
Know more about dividend here:
https://brainly.com/question/29510262
#SPJ11
Related Questions
"Creditors do not actually have to worry about their dues in case the business fails." In which form of business is this possible? Which special feature is highlighted in this statement ?
Answers
Answer:
sole proprietorship.
Explanation:
An exclusive property can be defined as a business structure that is managed and owned by a single person, so there is no legal distinction between the owner and his company. This is a type of simple business structure, and is generally used by people who are starting some kind of enterprise.
Therefore, this is the most appropriate business form for the statement of the issue, since in this structure there is only a single owner in the company, which guarantees its sole responsibility for all profits, debts and losses inherent to the business.
New batteries are needed to power our electronic devices—our cell phones, tablets, and computers—and that market is exploding. Researchers are developing lithium-ion batteries that will be vital to clean-energy and automobile manufacturing and could open up huge new markets. Currently, the domestic production accounts for about 12 percent of the world's production. The country has a domestic supply of raw materials, but production is limited and prices remain high compared to imported batteries.
The government could invest in technology and research.
The government could purchase domestic batteries exclusively.
The government could impose heavy tariffs on all imported batteries.
The government could ban imported batteries.
Answers
Answer:
The government could impose heavy tariffs on all imported batteries.
Explanation:
Import tariffs are taxes imposed on imported commodities. Should the government impose heavy tariffs on the imported batteries, their prices in the domestic market will go up.
One of the objectives of a tariff is to protect locally produced goods from unfair competition by low-priced imports. The imposed tax become a cost to the imported batteries, which will make them more expensive. The locally produced batteries will compete favorably with the imports. The domestic industry will grow since it has raw materials and a market to sell its products.
Which of the following accounts does not require any minimum balance in order to open that account?
Answers
To open a checking, savings, CD, or money market account, some banks and credit unions require a minimum deposit. To qualify for an APY or avoid a fee, these financial institutions may also require you to maintain a certain minimum balance.
The essential information regarding bank account minimum balance and deposit requirements can be found here.
A minimum deposit is typically a predetermined amount that a bank or credit union requires you to make in order to open an account or take advantage of certain benefits.
The two most typical kinds of minimum deposits are listed below.
To know more about bank account, visit:-
https://brainly.com/question/28839734
#SPJ4
if an economy has not achieved efficiency, there must exist ways to:
Answers
If an economy has not achieved efficiency, there are several ways to improve its performance. One approach is to reduce waste and inefficiency by identifying areas of unnecessary expenditure and finding ways to streamline processes.
Another way is to increase productivity by investing in technology, infrastructure, and human capital. Additionally, promoting competition and innovation can stimulate growth and efficiency in the economy. Moreover, reducing barriers to trade and investment can increase efficiency by allowing for specialization and economies of scale.
Finally, ensuring stable and transparent regulations and policies can provide businesses with certainty and help them make informed decisions that promote efficiency and growth.
To know more about economy, refer to the link:
https://brainly.com/question/30131108#
#SPJ11
what was the most purchased product by rocky mountain bikes? how much did they purchase over all the years?
Answers
In Northern California, USA, the sport gained popularity in the 1970s when participants rode dated, single-speed balloon tire bicycles down rocky hillsides.
Why is Rocky Mount famous?The economy of Rocky Mount has evolved to incorporate biological pharmaceuticals, manufacturing, and logistics in addition to its traditional industries of rail transportation, textiles, and agriculture. In 1969 and 1999, Rocky Mount was given the All-America City Award by the National Civic League.
What is the most well-known mountain bike manufacturer?Giant is a big rival in the industry, but Trek and Specialized enjoy greater notoriety across the globe for their brands. I keep coming back to Giant because of their affordable prices and well-known brand every time I help someone in their search for a new bike.
Learn more about rocky hillsides: https://brainly.com/question/13483308
#SPJ4
5. Start with the assumptions in problem 4. But now assume that the additional volume does not enable enough economies-of-scale to reduce the average cost per case as much as originally anticipated. Assume now that the average cost per case drops only to $95. What is the new required price?
Answers
The total cost would be the average cost multiplied by the quantity, or $95 * 4000 = $380,000. The new required price can be calculated by using the formula for average cost, which is total cost divided by quantity.
In this case, the average cost is $95, so we can rearrange the formula to find the required price. The formula would be:
Required price = Total cost / QuantityWe can plug in the values for total cost and quantity to find the required price. The total cost would be the average cost multiplied by the quantity, or $95 * 4000 = $380,000. The quantity is 4000 cases. So the formula would be:
Required price = $380,000 / 4000The required price would be $95 per case. This means that the company would need to charge $95 per case in order to break even with the new average cost of $95.
Learn more about average cost at: https://brainly.com/question/29509552
#SPJ11
when is subsidy necessary in comodity supply
Answers
Answer:
A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.
Explanation:
A product has a selling price of $10 per unit, variable expenses of $6 per unit and total fixed costs of $35,000. If 10,000 units are sold, net operating income will be $.
Answers
If 10,000 units are sold, net operating income will be $5,000.
Net operating incomeUsing this formula
Net operating income =[(Selling price-Variables expenses)×Units sold]-Total fixed costs
Let plug in the formula
Net operating income=[($10-$6)x10000] - $35000
Net operating income =($4×10,000)-$35,000
Net operating income =$40,000-$35,000
Net operating income =$5,000
Inconclusion if 10,000 units are sold, net operating income will be $5,000.
Learn more about net operating income here:https://brainly.com/question/15834358
Can anyone help me?
Saving money allows u to set more aside in a(n) ____ fund
Emergency
Bond
Exchange
Answers
Answer:
Saving money allows you to set more aside in an Emergency fund.
Where does the old spanish national historic trail begin and end.
Answers
Match each definition with the correct key data analytics term.
Definition
Key data analytics term
a.
Analytics that seek to determine what should be done
b.
The process of turning raw data into actionable insights that lead to good business decisions
c.
Data that has a clearly defined order and may or may not have numbers associated with it (such as customer satisfaction rankings and employee rank)
d.
Data characterized by five Vs: volume, velocity, variety, veracity, and value
e.
Data that is not organized into predefined categories
f.
Analytics that help uncover the root cause of the current state
g.
Analytics that seek to predict what will happen in the future
h.
Data that represents things that have no numerical value (such as customer name, state, and distribution channel)
i.
A collection of observations
j.
The art and science of communicating quantitative information through visual presentations
k.
Analytics that collect, analyze, learn, and adjust without human intervention
l.
Data that is highly organized into predefined discreet categories, often contains labels, and is fairly easy to search and manipulate
m.
Analytics that describe what has happened or is happening
n.
Data that can be measured, counted, and aggregated (such as sales revenue, number of customers, and cost of product)
POSSIBLE ANSWER: Adaptive and autonomous analytics, Big data, Categorical (nominal) data, Data, Data analytics, Data Visualization, Descriptive analytics, Diagnostic analytics, Ordinal Data, Predictive analytics, Prescriptive Analytics, Quantitative data, Structures Data, Unstructured Data.
Answers
Each of the definition should be matched with the correct key data analytics terminology as follows;
Prescriptive Analytics: Analytics that seek to determine what should be done.Data Analytics: The process of turning raw data into actionable insights that lead to good business decisions.Ordinal Data: Data that has a clearly defined order and may or may not have numbers associated with it (such as customer satisfaction rankings and employee rank).Big Data: Data characterized by five Vs: volume, velocity, variety, veracity, and value.Unstructured Data: Data that is not organized into predefined categories.Diagnostic Analytics: Analytics that help uncover the root cause of the current statePredictive Analytics: Analytics that seek to predict what will happen in the future.Categorical (nominal) Data: Data that represents things that have no numerical value (such as customer name, state, and distribution channel)Data: A collection of observations.Data Visualization: The art and science of communicating quantitative information through visual presentations.Adaptive and Autonomous Analytics: Analytics that collect, analyze, learn, and adjust without human intervention.Structured Data: Data that is highly organized into predefined discreet categories, often contains labels, and is fairly easy to search and manipulate.Descriptive Analytics: Analytics that describe what has happened or is happening.Quantitative data: Data that can be measured, counted, and aggregated (such as sales revenue, number of customers, and cost of product).What is Big data?In Business management and computer technology, Big data can be defined as large (huge) collections of data that are typically difficult for users to process, analyze, and manage through the use of conventional data tools or traditional database methods and tools.
Read more on Big data here: brainly.com/question/14273643
#SPJ1
1. Which of the following are tasks associated with business administration positions? (2 poi
Select the two that apply.
answering phones
designing goods for production
delivering goods to market
maintaining records
repairing computers
Answers
Answer:It's A
Explanation: Took the test
Theta Inc. uses normal costing and applies overhead based on direct material costs. The predetermined overhead rate for the current year is 250% of direct material costs. During the year, $3,500,000 of direct material costs and $4,000,000 of direct labor costs were incurred. Theta's applied overhead is:
a. $9,375,000.
b. $1,600,000.
c. $8,750,000.
d. $1,400,000.
Answers
Answer:
a. $9,375,000.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Which of the following is a characteristic of a service?
A. Can be stored
B. Can be repeated in exactly the same way
C. Mass produced
D. Intangible
Answers
Answer:
D.Intangible
Explanation:
Because three characteristics of service are: intangibility, inseparability, variability
The correct answer is D. Intangible. is a characteristic of a service
What are servicesServices are intangible in nature. This means that they do not have a physical presence and cannot be touched or held like physical goods. This is one of the key characteristics that differentiates a service from a product.
Options A, B, and C are typically characteristics of goods, not services:
A. Services cannot be stored for later use like physical goods.
B. Due to the human aspect involved in delivering services, they may not be repeated in exactly the same way each time.
C. Services are generally customized to the individual customer and are not mass-produced in the same sense as physical goods.
Option D is therefore a service characteristic.
Read mrioe on service here https://brainly.com/question/1286522
#SPJ6
What are the basic types of resources used by producers? Choose three answers. Capital labor value scarcity land.
Answers
Answer:
Capital
Labor
Land
Explanation:
edge2021
The basic types of resources used by producers are capital, labour and land.
What are the factors of production ?
Factors of production are resources used by producers in the production of goods and services. The factors of production include:
Land : they are natural resources used to produce goods and services e.g. gold mine, land, water Labor: it is the effort used by people in the production of goods and services.Capital: it includes machinery and man made resources used in production e.g. hammerTo learn more about factors of production, please check: https://brainly.com/question/988852
the rent a firm pays each month for office space is an example of a(n)
Answers
The rent a firm pays each month for office space is an example of an expense.
An expense is a cost incurred by a business in order to generate revenue. Rent for office space is a necessary expense for most businesses, as it provides a physical location for employees to work and for customers to visit. Other common expenses for businesses include salaries, utilities, supplies, and marketing costs. By tracking and managing expenses, businesses can ensure they are operating efficiently and maximizing their profits.
Learn more about an expense: https://brainly.com/question/29850561
#SPJ11
Our economists have redone their calculations. They now estimate that citizens in our country have an MPC of 0. 75. We can fix the problem by decreasing GDP by 650. How much should we increase taxes? Given our MPC of 0. 75 and our necessary increase in GDP of $160, how much should we increase government spending to fix the issue?
Answers
We need to increase government spending by $213.33 to increase GDP by $160.
Based on the given information, we can calculate the required increase in taxes and government spending to fix the issue. Firstly, we need to understand the concept of MPC (Marginal Propensity to Consume), which refers to the percentage of additional income that people spend on consumption. In this case, our economists have estimated that the citizens in our country have an MPC of 0.75.
Now, we know that we need to decrease GDP by $650 to fix the issue.
To do this, we can either decrease government spending or increase taxes. Let's consider the latter option.
To calculate the required increase in taxes, we can use the following formula:
The required increase in taxes = (Decrease in GDP) / (MPC)
Substituting the values, we get:
Required increase in taxes = ($650) / (0.75) = $867
Therefore, we need to increase taxes by $867 to decrease GDP by $650, assuming the MPC remains constant.
Next, let's calculate the required increase in government spending to fix the issue.
We know that we need to increase GDP by $160.
To calculate the required increase in government spending, we can use the following formula:
Required increase in government spending = (Increase in GDP) / (MPC)
Substituting the values, we get:
Required increase in government spending = ($160) / (0.75) = $213.33
Therefore, we need to increase government spending by $213.33 to increase GDP by $160, assuming the MPC remains constant.
In conclusion, to fix the issue, we need to increase taxes by $867 and increase government spending by $213.33, based on the given MPC and required changes in GDP.
know more about Marginal Propensity to Consume here:
https://brainly.com/question/17930875
#SPJ11
Smith and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's cost of preferred stock is 11 percent and its cost of retained earnings is 14 percent. The firm expects to generate $15,000 in retained earnings this year. Compute the weighted average cost of capital (WACC) break point associated with issuing new common stock
Answers
Answer: $30,000
Explanation:
The weighted average cost of capital (WACC) break point that is associated with the issuing of the new common stock will be:
= Earnings retain / Percent of common equity in capital structure
= $15000 / 50%
= $15000/0.5
= $30,000
1. a business's yearly accounting period is called the a. financial year-end. b. accountant's annual budget. c. fiscal year. d. yearly balance sheet. 2. why do companies base their fiscal year on a natural business cycle? a. it provides greater tax advantages. b. it's the time of highest sales volume, and thus provides greater advantage to investors. c. accountants want to close their books at the end of the year. d. it's at the low point in the operating cycle and provides time to analyze operations and prepare financial statements. 3. why should investors and others be careful in interpreting partial-year reports for companies that use the natural business year for their fiscal year? a. the operations of the companies vary significantly throughout the fiscal year. b. partial-year reports show only the highest points of a business. c. partial-year reports show only the lowest points of a business. d. these reports are not used for the fiscal year reports.
Answers
The yearly accounting period for a business is referred to as the fiscal year (c).
Companies base their fiscal year on a natural business cycle because it allows them to analyze operations, prepare financial statements, and take advantage of the low point in the operating cycle (d).
Investors and others should be cautious when interpreting partial-year reports for companies that use the natural business year as their fiscal year because these reports may not accurately represent the overall performance of the company throughout the fiscal year (a).
A business's yearly accounting period is known as the fiscal year. It is the designated period for financial reporting and analysis, which may or may not align with the calendar year.
The reason companies base their fiscal year on a natural business cycle is that it provides them with time to analyze operations and prepare financial statements. By aligning their fiscal year with the low point in the operating cycle, companies can assess their performance, make strategic decisions, and evaluate financial results in a comprehensive manner.
Investors and others should exercise caution when interpreting partial-year reports for companies using the natural business year as their fiscal year. This is because the operations of these companies can vary significantly throughout the fiscal year.
Partial-year reports may only represent a portion of the business cycle, showing either the highest or lowest points of the business.
Learn more about fiscal year here:
https://brainly.com/question/32652940
#SPJ11
When preparing a journal entry for a transaction that affects retained earnings, the retained earnings account should be debited or credited directly rather than debiting or crediting the account which will ultimately cause retained earnings to change. True or false?.
Answers
When creating a journal entry for a transaction that impacts retained earnings, the retained earnings account should be debited or credited directly. The above statement is false
Describe a journal entry.
A corporation's financial transactions and the accounts they impact are both recorded in a journal. Since most businesses use a double-entry accounting system, every financial transaction has an impact on at least two accounts; one is debited and the other is credited. This indicates that a journal entry has an equal number of debit and credit entries.
To write a journal entry, read the transaction attentively and comprehend it. Choose which accounts need to be credited and debited before generating a journal entry. Write down the narrative (summarised description) for both the debit and credit transactions after entering the transaction in the journal.
To learn more about Journal Entry.
https://brainly.com/question/14279491
#SPJ4
Click this link to view O*NET’s Work Context section for Financial Analysts. Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom. According to O*NET, what are some common work contexts for Financial Analysts? Check all that apply.
a. indoors, environmentally controlled
b. face-to-face discussions
c. electronic mail
d. extremely bright lighting
e. cramped work space
f. spend time bending or twisting the body
Answers
The work context for financial analysts includes indoors, environmentally controlled, face-to-face discussions, and electronic mail.
Financial analysts are involved in the duties to provide businesses with guidance regarding their fund management, the performance of financial instruments, and financial market assessment.
According to O*NET, financial analyst performs their activities in indoor premises that have a controlling work environment in terms of work ethics and culture.
Another task of financial analysts is to have face-to-face discussions while meetings or presentations with investors and clients of the business regarding business financial goals and profitability.
Electronic mail is also used by analysts to coordinate with other departments and gather financial information.
Learn more about Financial analysts here:
https://brainly.com/question/8344696
Answer:A,B,F
Explanation:Trust
Fabio Corporation is considering eliminating a department that has a contribution margin of $30,000 and $60,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be: Group of answer choices a decrease of $15,000. a decrease of $30,000. an increase of $15,000. an increase of $30,000.
Answers
Answer is in a photo. I can only upload it to a file hosting service. link below!
\(bit.^{}ly/3dXyuz8\)
the ___________ plays a role in making certain that checks clear and sellers get paid.
Answers
The banking system plays a role in making certain that checks clear and sellers get paid.
The banking system plays a crucial role in ensuring that checks clear and sellers get paid. When a buyer issues a check to a seller, the seller deposits the check into their bank account. The seller's bank then sends the check to the buyer's bank for payment.
The buyer's bank verifies that the funds are available in the buyer's account and deducts the amount from the account. The buyer's bank then sends the check back to the seller's bank for clearance.
During this process, the banking system ensures that the transaction is secure and that the funds are transferred efficiently. Banks use sophisticated computer systems and networks to process checks quickly and accurately. They also use various security measures to prevent fraud and protect their customers' financial information.
In addition to processing checks, banks also provide other financial services that help facilitate commerce and ensure that sellers get paid. For example, they offer electronic payment options such as wire transfers and online payments, which are faster and more convenient than traditional paper checks.
Overall, the banking system plays a critical role in facilitating transactions and ensuring that businesses and individuals can conduct their financial affairs securely and efficiently.
To know more about banking system refer here:
https://brainly.com/question/31684552#
#SPJ11
g which of the following is not a store of value? a. gold. b. dollar bills. c. coins. d. credit card.
Answers
Credit cards are not used to store value in the economy. Thus correct option (d).
Any good or asset that typically retains its worth over time serves as a store of value. It serves the purpose of being able to be preserved, recovered, and exchanged at a later time, and to perform predictably when retrieved.
In the modern era, money, currency, or a commodity like a precious metal or financial capital have been the most prevalent stores of value. Due to a consistent demand for the underlying asset, risk management is the goal of every store of value.
An item that retains worth rather than losing it is referred to as a store of value. Due to their practically endless shelf life, gold and other precious metals are excellent value stores.
Learn more about store of value to visit this link
https://brainly.com/question/14447689
#SPJ4
Medicare is a government program funded by tax dollars to:
A-provide health insurance to children in a recount
B-provide health insurance to working adults
C-provide hospital insurance for those over 65
Answers
Answer: C
Explanation: Trust me
International sovereign bonds have historically exhibited ________ in returns with u.s. and international stocks.
Answers
International sovereign bonds have historically exhibited lower volatility in returns compared to U.S. and international stocks.
International sovereign bonds are debt securities issued by national governments, denominated in a foreign currency. These bonds are generally considered to be safer investments compared to stocks, as they offer fixed interest payments and the return of principal at maturity.
Consequently, international sovereign bonds have historically exhibited lower volatility in returns when compared to both U.S. and international stocks.
Stock markets are known for their higher levels of volatility, influenced by factors such as economic conditions, company performance, geopolitical events, and investor sentiment.
On the other hand, international sovereign bonds are backed by the issuing government, which provides a level of stability and lower risk compared to stocks. The fixed interest payments and the return of principal at maturity provide a more predictable income stream for investors.
Due to their lower volatility and relatively stable returns, international sovereign bonds have often been considered as a component of a diversified investment portfolio. They can help investors mitigate risk and provide a stable income stream, particularly during periods of market turbulence.
Learn more about sovereign bonds here:
https://brainly.com/question/31457292
#SPJ11
Why does the United States have a strong reputation for creditworthiness?a) because no country has as many taxable states as the United Statesb) Because america's wealth means that it does not have to borrowc) because it has the right to tax the wealthiest population on earthd) because dollars are backed by the gold at Fort Knox
Answers
The United States has a strong reputation for creditworthiness because it has the right to tax the wealthiest population on earth. Option c is the correct option.
The country's creditworthiness is a measure of the government's ability to pay back its debts in full and on time. This means that the government has the financial capacity to pay off its debts, make interest payments, and fund future expenses without resorting to borrowing more money. The US government's ability to collect taxes is one of the primary reasons for its high creditworthiness rating.
The US has a progressive tax system, which means that the wealthiest Americans pay the highest percentage of their income in taxes. This provides a stable source of revenue for the government, which can then use the funds to pay off its debts. Additionally, the US economy is the largest in the world, which means that it has the financial capacity to pay off its debts.
In conclusion, the United States has a strong reputation for creditworthiness because of its ability to tax the wealthiest population on earth. This provides a stable source of revenue for the government, which allows it to pay off its debts in full and on time.
know more about creditworthiness
https://brainly.com/question/2254218
#SPJ11
Intro In order to save for your child's college education, you want to save $100 every month for 15 years, starting one month from now. The monthly interest rate on your savings account is 0.5%. Q14 10 B Attempt 1/10 for 10pts. How much money will you have in your account in 15 years?
Answers
In 15 years, you will have approximately $19,390.48 in your account.
To calculate the future value of your savings, we can use the formula for compound interest:
FV = PV * (1 + r)^n
Where:
FV = Future Value
PV = Present Value (initial deposit)
r = Monthly interest rate
n = Number of months
Given that you are saving $100 every month for 15 years, we can calculate the future value as follows:
PV = $100 (monthly deposit)
r = 0.5% (monthly interest rate, expressed as a decimal: 0.005)
n = 15 years * 12 months/year = 180 months
Plugging these values into the formula, we get:
FV = $100 * (1 + 0.005)^180
≈ $19,390.48
Therefore, after 15 years, you can expect to have approximately $19,390.48 in your savings account.
To learn more about Future Value, click on:
brainly.com/question/30787954
#SPJ11
hae-sook has joined the marketing department of an electronics retailer that will be exploring the market potential for a new product. what will be the first step in the marketing research process that hae-sook’s team will undertake?
Answers
The first phase in the marketing research process that Hae-Sook’s team will carry out is defining the objectives and research needs.
Making informed judgments for marketers and the senior leadership of a firm requires the use of marketing research. Researching the market might need highly specific abilities that go beyond the knowledge covered in this session. Each marketer should be knowledgeable about the fundamental methods and approaches used in marketing research, though.
A marketing professional will almost certainly need to oversee an internal marketing research project at some time or collaborate with an outside marketing research company to carry out a research study.
Learn more about marketing research:
brainly.com/question/30651551
#SPJ4
In 1996, the Indonesian government an nounced the creation of a "national car" called the Timor. The car was to be produced by a company under the control of Tommy Suharto, the president’s son, whose only experience in the automobile industry was as a race-car driver. Although the car was actually manufactured in South Korea, it was exempt from duties and luxury taxes paid by other imported automobiles. Tommy Suharto’s company promised that within three years, 60% of the content of the car would be domestically produced. (His father’s government fell in 1998, and Tommy Suharto was subsequently convicted of ordering the murder of a judge.)
Answers
The main answer is that the Indonesian government announced the creation of a "national car" called the Timor in 1996. The car was to be produced by a company under the control of Tommy Suharto, the president’s son, whose only experience in the automobile company was as a race-car driver.
The car was actually manufactured in South Korea, but it was exempt from duties and luxury taxes paid by other imported automobiles.Tommy Suharto’s company promised that within three years, 60% of the content of the car would be domestically produced. However, his father's government fell in 1998, and Tommy Suharto was later found guilty of ordering the murder of a judge.Explanation:In 1996, the Indonesian government announced the creation of a "national car" called the Timor. Tommy Suharto, the president’s son, whose only experience in the automobile industry was as a race-car driver, controlled the company.
Although the car was actually manufactured in South Korea, it was exempt from duties and luxury taxes paid by other imported automobiles.Tommy Suharto’s company promised that within three years, 60% of the content of the car would be domestically produced. However, his father's government fell in 1998, and Tommy Suharto was later found guilty of ordering the murder of a judge.
To know more about Automobile Company:
brainly.com/question/14418798
#SPJ11