Shay settled on a price of $8,950 for a new car. the dealer had to add 5% sales tax to this price, but allowed a $1,000 trade-in for shays old car. although not a universal practice, add the sales tax to the price of the new car first and then deduct the trade- in value. if the dealer required a 22% down payment, calculate the amount of the purchase price that shay financed.

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?

Why is efficiency an important economic goal?