Answer:
Personal greed, Decline of personal ethical sensitivity, the size and structure of governments, economic freedom/openness of economy, Cultural environments that condone corruption, Lack of transparency, Slow judicial processes, etc.
Explanation:
Answer:
zero
Explanation:
The activity in this scenario is fund raising/ issue note to a bank which is booked in financing activities, not in operating activities.
Thus we can said "there's no operating activity in Madison Company cash flow of 2016" if there's no other information.
Answer: a. 2.90%
b. 2.81%
Explanation:
Nominal rate = 6%
Inflation rate = 3.1%
a. What is the approximate real rate of interest?
The approximate real rate of interest will be calculated as:
= Nominal rate - Inflation rate
= 6.0% - 3.1%
= 2.90%
b. What is the exact real rate?
Exact real rate will be calculated as:
= (nominal-inflation) / (1+inflation)
= (6.0% - 3.1%) / (1 + 3.1%)
= 2.9% / 1.031
= 2.81%
I believe the answer is: High-income earners use tax laws to their advantage to reduce their tax rates
High income earners tend to possess financial knowledge or ability to allow experts who understand the full scope of taxation laws and how to recorded the transactions in a way that make it eligible for tax deduction. This makes a lot of high income earners manage to avoid paying taxes even if they manage to obtain a lot of profit.
Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
