The value of the based on the FCFE model is approximately $17.78 billion and the value of the stock based on the FCFF model is approximately $34.55 billion.
To calculate the value of the stock based on the FCFE (Free Cash Flow to Equity) model and the FCFF (Free Cash Flow to Firm) model, we'll use the following formulas:
Value of Stock based on FCFE Model:
Value of Stock = FCFE / (Required Rate of Return - Growth Rate of FCFE)
Given:
FCFE = $1.6 billion
Required Rate of Return = 15% or 0.15 (as a decimal)
Growth Rate of FCFE = 6% or 0.06 (as a decimal)
Plugging in the values:
Value of Stock = $1.6 billion / (0.15 - 0.06)
Value of Stock = $1.6 billion / 0.09
Value of Stock = $17.78 billion
Therefore, the value of the stock based on the FCFE model is approximately $17.78 billion.
Value of Stock based on FCFF Model:
Value of Stock = FCFF / (WACC - Growth Rate of FCFF)
Given:
FCFF = $1.9 billion
WACC = 12% or 0.12 (as a decimal)
Growth Rate of FCFF = 6.5% or 0.065 (as a decimal)
Plugging in the values:
Value of Stock = $1.9 billion / (0.12 - 0.065)
Value of Stock = $1.9 billion / 0.055
Value of Stock = $34.55 billion
Therefore, the value of the stock based on the FCFF model is approximately $34.55 billion.
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Question 11 (Multiple Choice Worth 5 points) (03.05 MC) Christina received an offer for a grant to pay for her college tuition. If she accepts the grant, what does this mean? O She will have to pay back the money after graduation. O She will not have to pay back the money. O She will only have to pay back half of the money after graduation. She will have to pay back twice the amount of money after graduation.
Christina received an offer for a grant to pay for her college tuition. If she accepts the grant She will not be required to repay the money.
What is a payment from a grant?A payment called a grant is a type of financial aid that is given to a recipient by the government or another organization to help them pay for a project or program. Grants typically come in one lump sum, but they can also come in a series of smaller payments spread out over time.
Most of the time, grants are given out based on how well the applicant can show that their project or program is valuable to the public and will help the community in some way. Research grants, educational grants, community development grants, and business grants are all examples of grants. The recipient of a grant payment is not required to repay the grant money.
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
PLEASE HELP in 2 to 3 sentences, explain the role of prices in a market and include distrbution, producers, and consumers
Price is the biggest and most important direct determinant in a market for aspects like distribution, producers, and the consumers in the market at large.
What is the significance of price?Price of a product, in an economy, can be referred to or considered as the rate at which a particular quantity of such product is demanded and supplied in the market in which such price prevails.
Higher price attracts producers and distributors, while lower price of a product in a market will attract a larger number of customers to buy such product.
Therefore, the significance regarding price has been aforementioned.
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Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category? Where might you suggest that Sam put the extra $125?
Answer:
Second savings account
Explanation:
Life is full of surprises... repairs or emergency cases this would be helpful to have
Answer:
In a zero based budget, your income needs to add up to zero at the end of every month. For that reason I recommend that if he still has money left over after paying bills and other expenses he should put in savings.
according to maslow’s hierarchy of needs, joining a leadership development group is an example of the self-actualization need.
According to Maslow’s hierarchy of needs, when one joins a leadership development group, it is an example of the self-actualization need. Therefore, it's true.
Self-actualization need simply means the realization of the potential of a person. It's self-fulfillment, and the desire to accomplish a particular thing.
In this case, joining a leadership development group is an example of the self-actualization need. In such a situation, the personal goal or desire of the person is accomplished.
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Which activity in the resource management planning process may be used by organizations to analyze their potential needs for resources
Acquire, Store, and Inventory Resources activity in resource management is
used by organizations to analyze their potential needs for resources.
What is Acquire, Store, and Inventory Resources activity?This resource activity entails the process by which goods and services are
available in the organization. Records in the inventory helps to monitor the
availability so as to prevent scarcity or incidences of them not being in
circulation.
Features of resource management planningThe resource management planning usually involves activities such as
acquiring the goods, storing them and records of their inflow and outflow in
the organization.
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According to experts, what organizational practice will allow the growth of ai to create new jobs?.
Artificial intelligence-based software may help human workers with repetitive and data-focused tasks.
What is organizational practice?Upskilling frequently occurs along a planned professional path, giving people visible opportunities for advancement as they increase their skill levels.
Artificial intelligence (AI)-based programs may assist human employees with repetitive and data-focused tasks, enabling them to acquire information quickly and reliably.
Additionally, this method allows employees more time to focus on difficult creative activities.
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Question 14 of 20
Why might health care costs be less of a concern for a British company than
an American company?
A. America has stronger laws that regulate health care.
B. American companies do not provide health care to employees.
C. Britain allows its citizens to seek foreign treatment.
D. Britain has a system providing free universal health care.
Answer:
A
Explanation:
America has strong laws regulate health care
Answer:
its D - Britain has a system providing free universal health care.
Explanation:
) Suppose that the linear equation for consumption in a hypothetical economy is C = $40 + .8Y. Also suppose that income (Y) is $400. Determine (a) the marginal propensity to consume, (b) the marginal propensity to save, (c) the level of consumption, (d) the average propensity to consume, (e) the level of saving, and (f) the average propensity to save.
Answer:
(a) The marginal propensity to consume is equal to 0.8.
(b) The marginal propensity to save is equal to 0.2.
(c) The level of consumption is equal to $360.
(d) The average propensity to consume is equal to 0.90.
(e) The level of saving is equal to $40.
(f) The average propensity to save is equal to 0.10.
Explanation:
Given:
C = $40 + 0.8Y ................... (1)
Y = $400 .............................. (2)
(a) the marginal propensity to consume (MPC)
This can be determined by differentiating equation (1) with respect to Y as follows:
MPC = dC/dY = 0.8
Therefore, the marginal propensity to consume is equal to 0.8.
(b) the marginal propensity to save (MPS)
MPS = 1 – MPC
Since MPC = 0.8, we have:
MPS = 1 – 0.8 = 0.2
Therefore, the marginal propensity to save is equal to 0.2.
(c) the level of consumption (C)
Since Y = $400, we substitute into equation (1) to have:
C = $40 + (0.8 * $400) = $40 + $320 = $360
Therefore, the level of consumption is equal to $360.
(d) the average propensity to consume (APC)
This can be calculated as follows:
APC = C / Y = $360 / $400 = 0.90
Therefore, the average propensity to consume is 0.90.
(e) the level of saving (S)
This can be calculated as follows:
S = Y - C = $400 - $360 = $40
Therefore, the level of saving is $40.
(f) the average propensity to save (APS)
This can be calculated as follows:
APS = S / Y = $40 / $400 = 0.10
Therefore, the average propensity to save is 0.10.
How are wealth and savings related?
Answer:
Wealth is an abundance of money and if you are good with your savings are a way you can get wealth
QUESTION 1 of 10: Which of the following is NOT a type of store layout?
O a) Spine
Ob) Runway
O c)
c) Loop
Od) Grid
Submit
The term that is not a type of store layout is b) Runway.
What is store layout?Store layout refers to the physical arrangement of products, fixtures, and other elements within a retail space. The layout is designed to maximize sales and customer satisfaction by creating an environment that is easy to navigate, visually appealing, and conducive to making purchases.
Store layout can include the placement of product displays, signage, shelves, aisles, checkout counters, and other elements. The layout is often designed to guide customers through the store in a specific pattern, with key products strategically placed along the way to encourage sales.
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Medicare Payment Is Concerned Primarily With _______. (Multiple Choice) A.) Home Context B.) Recreational And Leisure Context C.) Work And School Context
D.) All Daily Environments
The correct answer is D) All Daily Environments.
Medicare payment is primarily concerned with all daily environments, including home, recreational and leisure activities, work, and school contexts. Medicare is a government-funded health insurance program in the United States that provides coverage for eligible individuals, primarily those who are aged 65 and older, as well as certain younger individuals with disabilities.
Medicare payment encompasses a wide range of healthcare services and treatments provided to beneficiaries across various settings. This includes hospital stays, outpatient visits, physician services, prescription drugs, home healthcare, skilled nursing facility care, and more.
Whether a person receives medical care at home, engages in recreational or leisure activities, attends work, or goes to school, Medicare payment may be applicable depending on the specific services received and the eligibility criteria.
Medicare's aim is to ensure that beneficiaries have access to necessary medical services and treatments, regardless of the daily environment in which they require care. Therefore, Medicare payment is concerned with all daily environments to meet the healthcare needs of eligible individuals.
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Consider the following scenario. Suppose that the reserve requirement is 20%, and Leroy deposits a $1,000 of cash that he received as a graduation gift in his checking account. Suppose the bank holds an additional 1% of all deposits as an excess reserve. How much does the monetary base change?
A. $0
B. $1000
C. $800
D. $4761.91
Which of the following is NOT a typical task in the Administrative Support pathway?
Greeting and welcoming customer
Equipment operation and maintenance
Scheduling and confirming appointments
Filing and maintaining documents
Answer:
A. Greeting and welcoming customers.
Explanation:
The Administrative Support pathway is a career path that involves providing support for the daily operations of an office or organization. It involves tasks such as answering phones, responding to emails, managing schedules, organizing and maintaining records, and other similar activities. The main objective of this pathway is to make sure that the office runs smoothly and efficiently.
The tasks that are typically associated with the Administrative Support pathway are:
Greeting and welcoming customers: This includes greeting visitors, answering the phone, and directing calls or visitors to the appropriate person.
Scheduling and confirming appointments: This involves managing the schedule of an office, scheduling appointments, and ensuring that appointments are confirmed with clients.
Filing and maintaining documents: This involves organizing and maintaining important documents, such as contracts, invoices, and client information.
Equipment operation and maintenance: This task is not typically associated with the Administrative Support pathway. It involves ensuring that office equipment is properly maintained and operated, such as printers, copiers, and computers.
In conclusion, the Administrative Support pathway is a critical part of an organization's daily operations and requires a combination of technical skills and interpersonal skills.
Please mark me brainliest if I helped
the answer is A, greeting and welcoming customers
which of the following is true about eating at work
Answer:
It can make you distracted
Explanation:
The true statement about eating at work includes:
eating Food preparation area can cause contaminationyou should never eat while at workWhy is eating prohibit at work hours?In some firm, it is prohibited because it can causes distraction to others.
Hence, the true statement about eating at work includes eating Food preparation area can cause contamination and you should never eat while at work.
Therefore, the Option A & D is correct.
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The difference between stocks and bonds in terms of the future payments that they are expected to make is multiple choice 1 stocks pay fixed dividends, wheras bonds pay a variable amount of interest at regular intervals. Bonds pay dividends out of profits, whereas stocks pay a predetermined amount of interest at regular intervals. Bonds pay fixed dividends out of revenues, whereas stocks pay a variable amount of interest at regular intervals. Stocks pay dividends out of profits, whereas bonds pay a predetermined amount of interest at regular intervals
The difference is that stocks pay dividends out of profits while bonds pay a predetermined amount of interest at regular intervals.
What is a stock and bonds?Stock means the shares owned in a business and bonds means an isused debt that promises to repay at some point in the future.
Hence, the difference is that stocks pay dividends out of profits while bonds pay a predetermined amount of interest at regular intervals.
Thereforem the Option B is correct
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A tax that takes a higher percentage of income from people with lower
incomes is a
A. progressive tax
B. deductive tax
C. dependent tax
D. regressive tax
A regressive tax is a tax that takes a higher percentage of income from people with lower incomes. Hence, option D is correct.
What is regressive tax?When the overall tax burden drops as income increases, the tax is said to be regressive. While middle- and high-income taxpayers suffer a proportionally smaller part of the tax burden, low-income taxpayers bear a disproportionately large share.
Every taxpayer, regardless of economic level, pays the same amount of money, a regressive tax may initially seem to be a fair method of taxing residents. A closer analysis reveals that such a tax results in lower-income persons paying a bigger percentage of their income than do wealthy ones.
Thus, option D is correct.
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when accounting profits are positive, economic profits will be negative. will equal zero. must be positive. could be positive, negative or zero.
When accounting profits are positive, economic profits could be positive, negative, or zero.
Accounting profits only take into account explicit costs, such as explicit expenses and depreciation, while ignoring implicit costs, such as the opportunity cost of using resources in a particular venture. Economic profits, on the other hand, consider both explicit and implicit costs.
If economic profits are negative, it means that the business is not generating enough revenue to cover all costs, including both explicit and implicit costs. In this case, accounting profits may still be positive due to the exclusion of implicit costs from the calculation.
If economic profits are zero, it means that the business is earning enough revenue to cover all costs, including both explicit and implicit costs. In this scenario, accounting profits may or may not be positive, depending on the specific accounting practices and calculations used.
If economic profits are positive, it means that the business is earning revenue that exceeds both explicit and implicit costs. In this case, accounting profits are likely to be positive as well, but it is not necessary for them to be equal.
Therefore, accounting profits being positive does not necessarily imply that economic profits will be negative, zero, or positive. It depends on the specific circumstances and the inclusion of all relevant costs in the economic profit calculation.
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equipment that cost 391200 and has accumulated depreciation of 322800 is exchanged for equipment with a fair value of
Based on the information provided, the equipment has a net book value of $68,400 ($391,200 - $322,800 in accumulated depreciation). If this equipment is being exchanged for new equipment with a fair value of, say, $80,000, then the difference of $11,600 ($80,000 - $68,400) would need to be accounted for.
Depending on the specific accounting treatment for this exchange, this difference may be recognized as a gain or loss on the exchange. Additionally, the accumulated depreciation for the new equipment would start at zero and would need to be accumulated over time as the equipment is used. When equipment with a cost of $391,200 and an accumulated depreciation of $322,800 is exchanged, the net book value of the equipment is calculated by subtracting the accumulated depreciation from the cost:
Net book value = Cost - Accumulated depreciation
Net book value = $391,200 - $322,800
Net book value = $68,400
The equipment is exchanged for new equipment with a fair value of $68,400.
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Which of the following parts of a business plan include the cash flow projection and profit and loss projection?
7. if mrs. fong were to sell the 3m bond today, what would be her realized yield? 8. what is the yield to call of the amgen bond
A dividend is a payment made from a company's dividend bond profits to its shareholders. In addition to any growth in share value, dividends are provided to shareholders as remuneration for keeping the company's stock.
Sector-specific companies are known for paying dividends, and established companies that can afford to keep some profits on hand rather than investing every dollar.
Back into the business are more likely to do so Companies can give dividends on a regular basis, such once a quarter or once a year, or they can do so on an ad hoc basis. Dividend yield is the annual dividend payment a company makes for each dollar of capital invested. For example, if a company's dividend yield is 7% and you purchase $10,000 worth of its stock, you would the dividend.
Complete question:
7. if mrs. fong were to sell the 3m bond today, what would be her realized yield? 8. what is the yield to call of the amgen bond or dividend bond?
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The management of Revco Products is exploring four different investment opportunities. Information on the four projects understudy follows:
Project Number
1 2 3 4
Investment required $ (400,000 ) $ (350,000 ) $ (250,000 ) $ (370,000 )
Present value of cash inflows at a 10% discount rate 530,740 442,440 303,280 443,800
Net present value $130,740 $92,440 $53,280 $73,800
Life of the project 5 years 10 years 5 years 4 years
Internal rate of return 22% 16% 18% 19%
Because the company's required rate of return is 10%, a 10% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company can't accept all of the available projects.
Required:
1. Compute the project profitability index for each investment project.
2. Rank the four projects according to preference, in terms of net present value, project profitability index, and internal rate of return.
The company should prioritize Project 1 with the highest NPV, PPI, and IRR. Other projects also offer positive returns and should be considered if funds allow.
1. Project profitability index (PPI) for each investment project can be calculated by dividing the present value of cash inflows by the investment required:
Project Number
1 2 3 4
PPI 1.33 1.26 1.21 1.20
2. The projects can be ranked based on their net present value (NPV), project profitability index (PPI), and internal rate of return (IRR).
Based on NPV, Project 1 has the highest value of $130,740, followed by Project 2 with $92,440, Project 4 with $73,800, and Project 3 with $53,280. Therefore, the company should first invest in Project 1, followed by Project 2, Project 4, and finally Project 3.
Based on PPI, Project 1 has the highest value of 1.33, followed by Project 2 with 1.26, Project 3 with 1.21, and Project 4 with 1.20. Therefore, the company should first invest in Project 1, followed by Project 2, Project 3, and finally Project 4.
Based on IRR, Project 1 has the highest rate of return of 22%, followed by Project 4 with 19%, Project 3 with 18%, and Project 2 with 16%. Therefore, the company should first invest in Project 1, followed by Project 4, Project 3, and finally Project 2.
In conclusion, the company should prioritize investment in Project 1, as it has the highest NPV, PPI, and IRR. However, the other projects also offer positive returns and should be considered if the company has sufficient funds for investment.
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Your aunt ruth has $610,000 invested at 6. 5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take to exhaust her funds, i. E. , run the account down to zero?.
It will take Aunt Ruth 43 years to deplete her savings, or completely Period rate empty the account, If aunt Ruth intends to retire and has $610,000 invested at a 6.5% yield.
Rate per Period 0.065
Payment per Period $40,000.00
Present Value $610,000.00
Future Value $0.00
Ending (0), Beginning (1) 1
Total No. of Payments 42.40
Nper (rate,pmt,-pv,fv,type) Nper (0.065, 40,000, -610,000, 0, 1)
43 years
Price = Annual dividend / Required return
= 5 / 0.0225
= $222.22
The periodic rate is equal to the yearly interest rate when multiplied by the total number of periods. A mortgage's interest is normally calculated monthly, so if the annual interest rate is 4%, you would divide that amount by 12 to get 0.33 percent. That is the same as your monthly interest.
The actual interest rate is higher than the declared annual interest rate when a bank assesses periodic interest based on the typical balance of a loan on a monthly or daily basis. Compound interest's impact is the cause.
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Describe the laws that are enforced by the sec for companies that publicly sell stock.
The interests of shareholders must come first and they must be treated fairly and honestly by those who sell and trade securities. By monitoring the major participants in the securities market, such as exchanges, brokers/dealers, advisors, funds, and rating agencies, the SEC makes sure of this.
There are three key parts to the purpose of the US Security and Exchange Commission.
They uphold a fair, regulated, and effective market, safeguard investors, and promote capital formation.
Corporations that openly trade stocks are subject to rules that SEC has put in effect. These laws address the fact that broker-dealers, public companies, as well as some individuals, are all obliged to file reports with SEC on a regular basis. These investors and financial experts rely primarily on the information provided in these filings with the SEC to learn more about the firms they are thinking of investing in.
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There are things that will disqualify a person from police service. Drug use beyond "experimentation" will likely disqualify a person. Which best describes "experimentation" by hiring standards?
Using heroin once after the age of 21.
Using marijuana less than 10 times as a teenager.
Using marijuana on weekends after age 21.
Using another person's prescription drugs for recreation.
Answer: Using heroin once after the age of 21
Explanation:
I did a quick look up and I belive this is the answer. Hope it helps
Research the meanings of the following white collar crimes on the web and give a
brief meaning using your own words.
Insider trading
Larceny
Forgery
Counterfeit
Answer:
Insider trading - persons who have access to sensitive or important non-public information about a corporation trading its securities
Larceny - the stealing and transporting of personal property without the owner's consent with the purpose to rob like stealing that persons bike shoplifting
Forgery - the fraudulent act of creating, modifying, or imitating (as a document or signature).
Counterfeit - an item that unlawfully utilizes the trademark of another without that person's consent. By producing or offering a fake.
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Explain two ways in which mohammad could increase added value
The 2 ways in which where Mohammed could increase the added value of his company includes:
He could introduce new products and could modernize appearance and equipment in his coffee shop.He could start making cakes and pastries for special occasions like birthdays and weddings.What is an Added value?It refers to the profit that stays in the company as a difference between the total amount earned from sales and the total amount spent for production.
If such company's expenses for each product or service are higher then its price, then it is not going to have any added value. For instance, when company sells postcards for 5 dollars. In the same time, costs for making one postcard are 3 dollar. Added value = = 5 dollar - 3 dollar = 2 dollar.
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Company J has the following investments:
Trading securities (fair value) $25,000
Available-for-sale securities (fair value) 63,000
Held-to-maturity securities (amortized cost) 13,000
Company J should report long-term investments of:
Company J should report long-term investments of $101,000. The three types of investments companies typically make are trading securities, available-for-sale securities, and held-to-maturity securities.
Trading securities are investments in debt or equity securities made with the intention of selling them in the short term. These securities are reported at fair value on the balance sheet, and changes in fair value are recognized in the income statement.
Available-for-sale securities are investments in debt or equity securities that are not intended for immediate sale, but rather held for a longer period of time. They are also reported at fair value on the balance sheet, but changes in fair value are recognized in other comprehensive income (OCI) instead of the income statement.
Held-to-maturity securities are investments in debt securities that the company has the positive intent and ability to hold to maturity. These securities are reported at amortized cost on the balance sheet, and changes in fair value are not recognized on the income statement.
Company J has investments in all three types of securities. As a result, the long-term investments of Company J would be the sum of the carrying values of each type of investment. The carrying values would be:$25,000 for trading securities$63,000 for available-for-sale securities$13,000 for held-to-maturity securitiesTherefore, Company J should report long-term investments of $101,000.
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Owners of coffee plantations in the country of Cantonica grow their own coffee beans and supply them to various stores and restaurants all over the country. There are many plantation owners supplying to a huge number of companies, and they are typically unable to differentiate their products from one another. They also do not have the power to fix their own prices in the industry. In addition, these suppliers can only achieve competitive parity and not a competitive advantage. Thus, the coffee bean industry in Cantonica best illustrates a(n) ________ structure.
Answer:
Perfectly competitive structure
Explanation:
Based on the information we can say that the coffee bean industry in Cantonica best illustrates a(n) PERFECTLY COMPETITIVE structure reason been that this type of competitive structure companies can easily produce their own products and as well supply this product to different stores which makes them to have many small firms .
Secondly PERFECTLY COMPETITIVE structure allow owners of plantation to easily supply their product to different companies which which makes it hard for people to easily differentiate these products from one another.
Thirdly in PERFECTLY COMPETITIVE structure the firm involve have little or no right to increase the price of the product.
Therefore the coffee bean industry in Cantonica best illustrates a(n) PERFECTLY COMPETITIVE structure .
If you were an elected official who wanted to increase tax revenues, which of the following would you prefer to use: individual income, sales, property, corporate income, user fees, VAT or flat? Provide reasons for your decision.
Answer:
sales tax
Explanation:
It does not choose discriminatory the more you spend the more you pay, from a moral perspective people would rather pay for what they get rather than what they make and then possibly invest or save. They would not want to pay taxes at least 3 times if it is an investment.