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1 year ago

What is the amount of government revenue after the government imposes the excise tax on the market?

1 answer:

6 0

In a market where the demand curve is totally inelastic, if the government imposes an excise tax, the tax burden will entirely rest on the consumer and the deadweight loss will be equal to zero.

Information on excise tax

An excise tax is a controlled tax on certain goods or services, such as alcohol, cigarettes, and gasoline. Corporations are the main payers of excise taxes. Many of them are supported by commercial entities, who then charge consumers extra as a result.

Excise taxes are national taxes applied within a government infrastructure, as opposed to being imposed internationally across national borders.

Here are additional details regarding excise tax:

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The Dow Jones is currently valued at $24,000 and the 1-year Dow Jones Mini Future contract has a price of $24,750. Note Dow Jone

Svetllana [295]

Answer:

a) 152

b) $15,310,562.50

Explanation:

A) What position in futures contracts on the S & P 500 is it necessary to hedge the portfolio

The position is to short

The number to be shorted can be calculated using the formula below:

= ( β * value of portfolio) / (one futures contract size * number of times the value of the contract price)

where ; value of portfolio = $15 million , Beta = 1.25 , one future contract size = $24750, number of times = 5

= ( 1.25 * 15,000,000) / ( 24,750 * 5) = 151.5 ≈ 152 contracts

b) What is our portfolio value of your portfolio with the hedge from part a

Given that 6 months has passed

Dow Jones now valued at $24720

Future price now $25,100

first step : calculate loss from position in part a

= 152 * 5 * ( 24,750 - 25,100 ) = - $266,000

next : calculate Gain on index

= 24,720 - 24,000 / 24,000 = 0.03 = 3.00%

Total gain = Gain on index + annual dividend / 2

= 3% + 0.75 / 2 = 3.375%

where risk free rate ( 6 months ) = gain on index / 2 = 1.5%

Calculate Return with the use of CAPM

= 1.5% + 1.25* ( 3.375% - 1.5% ) = 3.8438%

Hence value of portfolio after 6 months will be calculated as

= Current portfolio value * ( 1 + return )

= 15,576,562.50

Therefore the

Net value = portfolio value - loss from futures position

=$15,310,562.50

6 0

2 years ago

At the beginning of the year, a company predicts total overhead costs of $810,900. The company applies overhead using machine ho

nika2105 [10]

Answer:

$13,780

Explanation:

For computing the overhead applied first we have to determine the predetermined overhead rate which is shown below:

Predetermined overhead rate = Total overhead cost ÷ Machine hours

= $810,900 ÷ 1,530 machine hours

= $530

Now the amount of overhead applied is

= predetermined overhead rate × number of machine hours used

= $530 × 26 machine hours

= $13,780

By multiplying the predetermined overhead rate with the number of machine hours used we can get the amount of overhead applied

7 0

3 years ago

A company manufactures 1,200 cylinders per day, each requiring a pressure gauge. The purchase price of the pressure gauge is $3.

Dennis_Churaev [7]

Answer:

Explanation:

Given weekly demand = 1200 units

Number of weeks per year = 45

Annual demand (D) = weekly demand × number of weeks per year = 1200 × 45 = 54,000 units

Ordering cost(C) = $55

Holding cost (H) = 25% of purchase price = 25% of $3.20 = 0.25*$3.20 = $0.8

EOQ = √(2DC/H) = √[(2 × 54,000 × 55) / 0.8] = √(5,940,000/0.8) = √7,425,000 = 2,725 units

Answer is D - 2,725 units

6 0

3 years ago

Read 2 more answers

Sql has built-in functions, which are also called ____________________ functions.

Sever21 [200]

Answer: Aggregate

Explanation: Aggregate demand is the sum of consumption expenditure, investment expenditure, government expenditure, and net exports.

Here is more information!!!: http://www.businessdictionary.com/definition/aggregate-demand.html

3 0

3 years ago

Which of the following is an example of the effective use of email communications? When sending an email, Jake avoids using a d

hichkok12 [17]

Answer:

When sending an email, Ellis restates the subject in the body of the message.

Explanation:

Email has some standard guidelines for preparing the email.

It includes that the subject shall also be defined again in the descriptive area, where entire content of email is discussed.

There must be a descriptive line showing the purpose of email.

There shall be supportive subject for the description of email.

If the email has some quantitative data then it shall be summarized using graphs, pictures etc:

In a single email, least topics shall be discussed as that will not confuse the reader, and will be logical, towards the response for such email.

4 0

3 years ago