Answer:
B, decrease the firm's cost of capital
Explanation:
When the tax rate of a levered firm is increased, there is a decrease in the firm's cost of capital because the value of a levered firm is the sum of the market value of the firm's debt and its equity.
An increased tax rate means it has a greater debt and as such the firm's capital after settling tax debt is very reduced.
I hope this helps. Cheers.
Answer:
See the explanation for the answers.
Explanation:
1. "Regulate it" is superior because anti trust makes it open to competition and the firm no longer remains a monopoly.
2. A regulated monopoly lower the price it charges from consumers which benefits the consumers because their consumer surplus increases. A regulated monopoly also offers better quality products.
3. Yes, there are redeeming qualities of monopolies.
Advantages of monopoly-
(a) The profits that the monopolist earns can be invested in R and D.
(b) Monopolies can practice price discrimination which can benefit weaker sections of the society.
(c) Monopolies can invest in latest technology which increases productivity and total output of a country.
(d) The government generates revenue from taxing the monopoly firm.
Answer:
FV = 51
Explanation:
Base on the scenario been described in the question, we can use compound interest to compute the give problem
The formula for compound interest is given as follows
FV = PV x e (i x t),
We are given the following values
PV= 50
t = 0
I = 2%
Substituting the values into the equation
FV = 50 *exponential 0.2*0
FV = 51
As our answer.
The equilibrium between possible threats and prospective compensation is known as risk/return trade-off.
