Answer:
Correll Company
a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.
b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.
Explanation:
a) Data and Calculations:
Cost of merchandise to customers in State R = $18 million
State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%
Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)
b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.
Suppose that a worker earns x$ every other month. In September he earns 5x. We have that his total earnings are 11*x +5x (Eleven months income plus September). Hence 16x is the amount of total earnings. The ratio of earnings in September to the total earnings is
=0.3125. Hence, 31,25% of his earnings where accrued in September.
Answer: b) import cotton.
Explanation:
If the international price is cotton is less than the price that a country produces it at, it is best that the country imports the cotton than produce it because they do not have a competitive advantage in producing the cotton.
Should they then import, the resources that were being used to produce the cotton can be used on other things that they do have competitive advantage in.
Answer:
$22.60
Explanation:
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock:
D÷R = 4.18/0.185
= $22.6
Interest rates increase
Purchasing power falls (because money is worth less under inflation)
Fewer fixed rate bank loans (banks are more likely to offer variable interest rate loans so that they can increase the rate if inflation continues to rise so they don't lose money)
Production begins to fall (if a business's purchasing power decreases and they are less able to buy raw materials and supplies it will be more costly to manufacture goods).