1. Share a specific personal experience/transaction depicting a positive externality. You may be part as an actor or as a by-stander from said action/transaction. Identify other possible by-standers who benefited from this externality. Describe the impact of your experience/observation to the by-standers.
2. Give an example of a negative externality that apparently affected you or your family/neighborhood or some groups or sectors in your community or locality at present or in the past. How was this conflict resolved? If no solution was derived yet, what possible measure/s could you think of that might help solve/mitigate this problem of externality? Do you think the Coase Theorem is applicable in this case? Support your answer.
3. Relate “The Tragedy of the Commons” to the workings of capitalism and communism in managing resources. What would be the implication/s if the common resource is a public good?
4. Why is the cow not extinct?
5. What is a ‘free-rider’ in economics? In what instance this could be a problem?
ANSWER; 1) A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction. For example, education directly benefits the individual and also provides benefits…View the full answer
Return on Equity Assignment | Homework For You high school essay help
Spartacus Inc.,has sales of $4,500,000, net income of $250,000, assets worth $3,700,000 and total common stockholder equity of $2,500,000. The ROE for Spartacus is ______.Get Finance homework help today
Financial Statements Assignment | Homework For You high school essay help
Answer the following: 1. Share a specific personal experience/transaction depicting a positive externality. You may be
Cowboy Ice Cream, Inc. is a small business and likely wouldn’t go public at any time in the foreseeable future. However, factors that increase the value of CIC are also factors that increase the value of publicly traded companies. Users of the financial statements are particularly interested in better understanding the events and circumstances that create value. Although the financial statements report highly relevant and important information, they mainly contain details about transactions that have already occurred. While this information can help users to better understand past performance (and better predict what will happen in the future) the financial statements are just one piece of information in a very large set. Consequently, users need to be aware of—and prepared to respond to—other events that can help them to better forecast a particular company’s future. Keep these points in mind as you respond to the following.
Discount Drugs (one of the three largest drug makers) just reported that its 2018 third quarter profits are essentially the same as the 2017 third quarter profits. In addition to this announcement, the same day, Discount Drugs also announced that the Food and Drug Administration has just approved a new drug to treat high blood pressure that Discount Drug developed. This new drug has been shown to be extremely effective and has few or no side effects. It will also be less expensive than the other drugs currently on the market.
What do you think will happen to the stock price of Discount Drugs on the day these two announcements are made? Explain your answer.
How will the balance sheet be affected on that day by these announcements?Get Finance homework help today
Financing for Business Idea Assignment | Homework For You high school essay help
Sole Proprietorship Assignment | Homework For You high school essay help
can generally raise significant capital from non-owner sources.
involves significant legal costs during the formation process.
provides limited financial liability for its owner
has its profits taxed as personal income.
has an unlimited life.Get Finance homework help today
Selling Additional Shares of Stock Assignment | Homework For You high school essay help
To date, shareholders have contributed $75,000 of capital to CIC. Now, in order to finance expansion, CIC is considering selling additional shares of stock. This contemplated sale is planned to finance the expansion. CIC has previously explored expanding by borrowing all necessary funds, but is concerned that doing so would be too risky.
Why would it potentially be less risky for CIC to sell additional stock rather than borrow all funds needed?
CIC’s articles of incorporation authorize the sale of 50,000 shares of $1 par value common stock and 5,000 shares of $100 par value, 6% cumulative preferred stock. The $75,000 invested to date was for 15,000 shares of common stock. That is, the $75,000 balance in the Stock account is actually composed of $15,000 of Common Stock and $60,000 of Paid-in-Capital in Excess of Par.
The existing shareholders of CIC are concerned about giving up control of the company by issuing additional shares of common stock. Given that concern, what type of stock would you suggest they make available for purchase? Why?
Assume CIC issued 4,000 shares of preferred stock for $600,000. Record this transaction in the horizontal statements model below.
PIC in Excess
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Finance-Related Skills Assignment | Homework For You high school essay help
Interest-Rate Swap Assignment | Homework For You high school essay help
How can financial-service providers make use of interest-rate caps, floors, and collars to generate revenue and help manage interest rate risk?(Please explain in details)Get Finance homework help today
Book Value Assignment | Homework For You high school essay help
Use historic average of past book values over a business cycle.
Adjust book value for off-balance-sheet assets and liabilities.
Use tangible book value rather than total book value. Get Finance homework help today
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