Answer: $52.96
Explanation:
Based on the information given in the question, the value that should be placed on a share of this firm's stock if a 14% rate of return is required would be:
= [648200/(14%-3.8%)]/120000
= (648200/10.2%)/ 120000
= $52.96
Answer:
differing opinions on the point we are on the Laffer Curve
A
Explanation:
The Laffer Curve is a supply side economic theory developed by Arthur Laffer in 1974.
The curve depicts the relationship between tax rates and tax revenue
According to this theory, higher income tax rate reduces the incentive of labour to work and invest due to the fact that labour would have to pay higher tax. This means that at some point, increase in the tax rate would decrease government revenue rather than increase it.
The theory submits that there is an optimal tax rate at which tax income is maximised. Once this point is surpassed, increase in tax rate would reduce government revenue
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Effects of a binding price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
A rent ceiling would lead to shortage of houses and a reduction of the quality of available housing.
GDP represents the total dollar value of all goods and services produced over a specific time period. So, basically the <span>key factors that have influenced GDP movements of Russia in the first decade of the 21st century are the different markets that are available.</span>
