<span>Price elasticity of demand is
-1.25 = Ed</span>
Price elasticity of supply =
Es
Share of tax by consumers =
0.80 = Es / (Ed + Es) = Es / Es + 1.25
0.8 Es + 1 = Es
1 / 0.2 = Es = 5
Therefore, the price elasticity of supply is 5
<span> </span>
Answer:
$1,042.04
Explanation:
to calculate the present value using a continuously compounded interest rate, we can use the following 2 formulas:
1) present value = cash flow / eⁿˣ
- e = 2.71828
- x = 5% / 2 = 2.5%
- n = 10
- cash flow = $1,030
present value = $1,030 / 2.71828¹⁰ˣ⁰°⁰²⁵ = $1,030 / 1.284 = $802.16
2) present value of an annuity = payment [(1 - e⁻ⁿˣ) / (eˣ - 1)]
- payment = $30
- x = 2.5%
- n = 9
- e = 2.71828
present value = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30(0.2015 / 0.0252) = $239.88
present value of the stream of cash flows = $802.16 + $239.88 = $1,042.04
Answer:
The total value of this firm if you ignore taxes is $16 million.
Explanation:
Considering that the company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares, hence to calculate the total value of the firm we have to first make the following calculation:
$1,000,000÷2,500= 400
Hence, Total value of the firm= 400×40,000 shares of stock outstanding
= $16 million is the total value of this firm if you ignore taxes.
The main type of Insurance company includes:
- General insurance company
- Life insurance company
- Reinsurance company
<h3>What is the role of
Insurance company?</h3>
These are financial institution that provide insurance covers to intending policyholders.
Therefore, the main type of Insurance company includes general insurance company, Life insurance company and Reinsurance company.
Read more about Insurance company
<em>brainly.com/question/13641753</em>
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