Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
The market-to-book ratio is: $2.96
Explanation:
The market-to-book ratio compares the market value of an organization with its book value. The formula to calculate market-to-book ratio is equal to the market price per share divided by the book value per share. So,
Market-to-book ratio= $36.08/$12.19
Market-to-book ratio = $2.96
Answer:
people care more about their own surplus than they do about total surplus.
Explanation:
Price control can either be a price ceiling or a price floor.
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. It is usually set below equilibrium price.
Price ceiling increase consumer surplus and reduce producer surplus.
A price floor is when the government or an agency of the government sets the least price a good or service can be sold. It is usually set above equilibrium price.
Price floor increases producer surplus and reduces consumer surplus.
Producers would be advocating for a price floor because it increases their surplus, while, consumers would advocate for a price ceiling.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
Producer surplus is the difference between the price of a product and the least price the seller is willing to sell the product.
I hope my answer helps you
Answer: Registered Bonds
Explanation:
A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms are rightly given out and also to track claims to coupons.The two ways bonds can be registered and transferred
1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,
2. Electronically bY recording on a system database for ownership claim and for transfer of bonds.
The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.
Failure<span>________ transparency ensures that the system will continue to operate in the event of a node failure.</span>
