Based on the information given the cost basis is $132,000.
Using this formula
Cost basis=Purchases price+ Transportation costs + Installation costs + Special acquisition fees
Where:
Purchases price=$109,000
Transportation costs=$12,000
Installation costs=$5,000
Special acquisition fees=$6,000
Let plug in the formula
Cost basis=$109,000+$12,000+$5,000+$6,000
Cost basis=$132,000
Inconclusion the cost basis is $132,000.
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Answer:E. The income tax rate in Zerbia rises with the level of taxable income
Explanation:
When the tax rate rise in proportion to the income tax it means a low income tax will bring in lower income and this fall contrary to the target achievement of increasing income by lowering the tax rate.
An inequality in salary will not adversary affect a reduction in Income tax to boost the economy as all workers will have more disposable income compare to the period before income tax rate. deduction.
An increase in propensity to save in an economic where income tax is reduced will help to increase savings and subsequently investment.
With a low wage for skilled workers the reduced income tax rate will help to increase disposable income.
The capital output will be utilized to improve output, with less income tax.
Answer:
a. The situation can be shown with a normal equilibrium supply and demand graph (as shown in the attached file).
b. There is a shift in demand from left to right due to the crowding out of the deficit budget.
Explanation:
If the government is running a deficit budget, there will be an increase in the total demand for loanable funds. This is because the government must borrow money to balance the situation. As a result, the interest rate will increase. However, the private demand will remain the same and investment will be less due to the high interest rate.
The price elasticity of demand is 1. You determine price elasticity by dividing the percent change in quantity demanded (there was a 150% change from 30 to 45) by the percent change in price (there was a 150% change from $12 to $8). 150/150=1.
Answer:
Equity Beta= 2,529
Explanation:
The risk of investing in a particular stock is measured with a metric referred to as equity beta. Equity Beta measures the volatility of the stock to the market, how sensitive is the stock price to a change in the overall market. It compares the volatility associated with the change in prices of a security. It changes with the capital structure of the company which includes the debt portion.
There are 3 methods to calculate Equity Beta:
1- Using the CAPM Model
2- Using Slope Tool
3- Using Unlevered Beta
In this exercise, we have the information to use the third method.
Equity Beta Formula = Unlevered Beta [ 1 + (D/E)( 1-Tax )]
Unlevered Beta= 1,23
D/E= 0,46
Tax rate= 0,35
Equity Beta = 1,23 + (1+0,46*0,65)
Equity Beta= 2,529
