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3 years ago

Whether a buyer or a seller pays more of a commodity tax depends on:

2 answers:

6 0

A buyer or seller that pays more of a commodity tax is still dependent on a specific factor such as the relative price elasticity that are present or visible because this could greatly affect the commodity tax that the buyer or seller pays.

aivan3 [116]3 years ago

3 0

Answer:

becaude of the taxes

Explanation:

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You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 8 percent, −15 percent, 19 perc

sattari [20]

Answer:

a). Arithmetic average return=12.80%

b). The variance of the company's returns=116.2

c). Standard deviation=10.78

Explanation:

a). The arithmetic average return can be expressed as;

Arithmetic average return=Sum of returns/Number of returns

where;

Sum of returns=8%+(-15%)+19%+31%+21%=64

Number of returns=5

replacing;

Arithmetic average return=64/5=12.80%

b). Variance of the company's returns

Step 1: Write down formula for variance

Variance=∑(Xi-X)²/n-1

where;

Xi=term in data set

X=sample mean

∑=sum

n=sample size

Step 2: write down each data set

X1=8%, X2=-15%, X3=19%, X4=31%, X5=21%

Step 3: Subtract the mean from each data set

Take the absolute value of each data

X1-X=8-12.8=-4.8

X2-X=15-12.8=2.2

X3-X=19-12.8=6.2

X4-X=31-12.8=18.2

X5-X=21-12.8=8.2

Step 4: Square each result and sum

∑(Xi-X)²=4.8²+2.2²+6.2²+18.2²+8.2²=464.8

Step 5: Divide by n-1

n=number of data points=5

n-1=5-1=4

∑(Xi-X)²/n-1=464.8/4=116.2

The variance of the company's returns=116.2

c). Standard deviation=√variance=√116.2

Standard deviation=10.78

5 0

3 years ago

Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and have expected total cash inf

miss Akunina [59]

Answer:

Proposal A

3.75 years

Proposal B

3.375 years

Explanation:

Proposal A

Payback = 3.75 years

Year Cash Inflow Initial Investment Balance Year Count

0 0 1,050,000

1 $280,000 770,000 1

2 $280,000 490,000 2

3 $280,000 210,000 3

4 $280,000 0 *3.75

* 1050,0000 / 280,000 = 3.75 years

Proposal B

Payback = 3.375 years

Year Cash Inflow Initial Investment Balance Year Count

0 0 1,050,000

1 $350,000 700,000 1

2 $3150,000 385,000 2

3 $280,000 105,000 3

4 $280,000 0 *3.375

* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years

5 0

3 years ago

Which of the statements below is FALSE?

Alecsey [184]

Answer:

C. The standard of one vote for each share cannot be altered.

Explanation:

Shares are sold to individuals that now obtain ownership rights of a company.

Common share holders are entitled to voting in of new board members and also have the ability to vote for changes in bylaws of the company.

Also common shareholders are shares have different classes with different voting rights.

However it is not true that the standard of one vote for each share cannot be altered.

When more shares are issued by a company it can result in dilution of shares. That means for example if a person has 10,000 shares in a company with 1 million shares, and the company now issues an extra 1 million shares making 2 million in total now.

The shareholder's standard of vote for each share is now halved

5 0

3 years ago

Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the

Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)% = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0

3 years ago

External factors in a SWOT analysis include the strengths and weaknesses of an organization.

Katarina [22]

Answer:

False

Explanation:

External factors in a SWOT analysis does not include the strengths and weaknesses of an organization. The full meaning of SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The Strengths and weaknesses are internal factors to an organization as they have management control over it and can be modify as well.

4 0

3 years ago