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2 years ago

During inflationary periods, individuals make more money (nominally) and pay taxes at ___________ marginal tax rate.

1 answer:

4 0

During inflationary periods, individuals make more money (nominally) and pay taxes at a progressive marginal tax rate.

A progressive tax is one in which the tax rate rises as the amount subject to the tax rises. When a tax rate progresses from low to high, it is said to be progressive. As a result, a taxpayer's average tax rate is lower than their marginal tax rate. The phrase can be used to describe both individual taxes and an entire tax system. Progressive taxes are implemented in an effort to lessen the impact of taxes on those who have a lesser ability to pay because they gradually move the incidence to those who have a higher ability to pay.

Learn more about progressive tax here:

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Daniel is a baker who has decided to create his own brand of chain restaurants, Short and Sweet. He negotiates with three suppli

Harman [31]

Answer:

C) The invisible hand

Explanation:

Daniel here seeking to produce and increase his welfare is "led by an invisible hand" to negotiate with his suppliers and to sell goods to his neighbors in a way that everybody is better off as a result from these transactions.

This is also a clear example to what Adam Smith was referring to the invisible hand:

"in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " Adam Smith, The Wealth of Nations, Book 4, Chapter 2

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3 years ago

You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n

natka813 [3]

Answer:

$18.18

Explanation:

Calculation to determine the call option's value using the two-state stock price model

Based on the information given since the two possible stock prices are: S+ = $130 Increase and and S- = $70 decrease which means that If the exercise price is the amount of $100 the first step will be to determine the corresponding two possible call values.

First step is to determine the corresponding two possible call values.

Hence, the corresponding two possible call values are:

Cu = ($130-$100) and Cd = $0

Cu = $30 and Cd = $0

Second step is to Calculate the hedge ratio using this formula

Hedge ratio= (Cu - Cd)/(uS0 - dS0)

Hedge ratio= (30- 0)/(130 - 70)

Hedge ratio=30/60

Hedge ratio= 0.50

Third step is form the cost of the riskless portfolio and end-of-year value

Cost of the riskless portfolio = (S0 - 2C0)

Cost of the riskless portfolio = 100 - 2C0

End-of-year value =$70

Fourth step is to calculate the present value of $70 with a one-year interest rate of 10%:

Present value=$70/1.10

Present value= $63.64

Now let estimate the call option's value by first Setting the value of the hedged position to equal to the present value

Call option's value=$100 - 2C0 = $63.64

Hence,

C0=$100-$63.64/2

C0=$36.36/2

C0=$18.18

Therefore the call option's value using the two-state stock price model will be $18.18

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2 years ago

Barto Company provides this information for the month ended October 31, 2017: sales on credit $300,000, cash sales $150,000, sal

anastassius [24]

Answer:

The Multi-step income statement is attached, Please find it

Explanation:

The multi-step income statement is attached with this answer please find it.

Gain On Disposal will appear in the other income section of the multi-step income statement

Cost of goods sold will appear in the cost of goods sold section of the multi-step income statement

Depreciation expense will appear in the operating expense section of the multi-step income statement

Sales returns and allowances will appear in the sales / net sales section of the multi-step income statement

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2 years ago

Holden believes that all races are equal and goes out of his way to support programs and legislation that are aimed at achieving

Alchen [17]

He is a buisseness manager

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2 years ago

Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. Du

Kisachek [45]

Answer:

The answer is c. $600,000

good luck ❤

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3 years ago