All categories

2 years ago

For investors, changes made to the tax code by the government are known as a form of:______.

1 answer:

8 0

For investors, changes made to the tax code by the government are known as a form legislative risk, which results from changes in law.

Legislative risk refers to the possibility that government legislation or regulations will significantly alter the business prospects of one or more companies. These changes may have a negative impact on the firm's investment holdings. The legislative risk may occur as a direct result of government action or by changing customer demand patterns. Investors rarely complain about preferential treatment and bailouts for specific industries, possibly because they all work with the secret hope of profiting from them.

What subsidies and tariffs can give an industry in terms of competitive advantages, regulation and taxation can take away from many others. They can send shockwaves around the world and destroy companies and entire industries with a single law, subsidy, or switch of the printing press. As a result, many investors consider legislative risk to be a major factor when evaluating stocks.

Learn more about legislative risk here:

brainly.com/question/9230331

#SPJ4

You might be interested in

Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labo

Rzqust [24]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.

T 498:

Total direct labor-hours 80

First, we need to calculate the estimated manufacturing overhead rate for the period:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (497,000/70,000) + 2.4= $9.5 per direct labor hour.

Now we can allocate the overhead to Job 498:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 9.5*80= $760

3 0

2 years ago

A snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of the

Wewaii [24]

Answer:

difference threshold

Explanation:

Difference threshold is use by businesses or effectively reduce cost without affecting their profit margin .

It is the minimum amount of change that is required to make consumers of a product to notice the change 50% of the time.

In the given scenario the snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change.

7 0

3 years ago

The Skysong Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share i

DENIUS [597]

Answer:

Building C

Explanation:

Building A: Purchase for a cash price of $620,000, useful life 27 years.

Building B: Lease for 27 years with annual lease payments of $71,170 being made at the beginning of the year.

Building C: Purchase for $657,500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,200. Rental payments will be received at the end of each year.

11% cost of funds

we must determine the present value of each option:

Building A's present value = $620,000
Building B's present value = $71,170 x 9.48806 (PV annuity due factor, 11%, 27 periods) = $375,265.23
Building C's present value = $657,500 - [$6,200 x 8.5478 (PV ordinary annuity factor, 11%, 27 periods) = $657,500 - $52,996.36 = <u>$604,503.64 (LOWEST PV)</u>

7 0

2 years ago

Vending machines are no longer limited by the need for cash. In Japan, South Korea, and the Philippines, consumers use mobile ph

Lemur [1.5K]

Answer: Information Utility

Explanation: it helps customers to access information on their buying activity and gives them information available on their buying options

4 0

3 years ago

Consider the following yields to maturity on various one-year zero-coupon securities: Security: Treasury AAA Corporate BBB Corpo

Katyanochek1 [597]

Answer:

94.70%

Explanation:

The computation of the price expressed as a percentage of the face value is given below:

= Price ÷ Face value × 100

= (Face value ÷ (1 + YTM)) ÷ Face value × 100

= ($1,000 ÷ (1 + 5.6%)) ÷ ($1,000) × 100

= $946.97 ÷ $1,000 × 100

= 94.70%

Hence, the price expressed as a percentage of the face value is 94.70%

Here we assume the face value be $1,000

4 0

2 years ago