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iris [78.8K]
3 years ago
10

A tariff:_________.

Business
1 answer:
Sergio [31]3 years ago
8 0

Answer:

<h2>C. Makes domestic consumer worse off. </h2>

Explanation:

A tariff is levied on the exports and imports between two countries. It is meant to regulate the foreign trade and encourage the domestic industries and safeguard them from the competition of foreign goods. Tariffs are source of income for states. Tariffs and import export quotas are most used instruments of protectionism. Tariffs are fixed or variable.

It can put the domestic consumer in an advantageous position as due to tariffs they would not be able to get less costly products.

You might be interested in
Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town
oee [108]

Answer:

<em>Reasons For: </em>

  • Less Wastage - A Green town according to the City Administrator Steve Hewitt would lead to more efficiency in the way that the city manages it's resources. The city will be more effective and more efficient which will have the effect of less waste in their materials. For instance, instead of having an 85% efficient furnace, they can buy a better one that will be more sustainable.
  • Increased Attractiveness - Green towns and cities are a new favourite of people especially in this day and age of constantly worrying about climate change. People would therefore look favourably upon Greensburg if they were to become a Green town and come to settle there which will fuel the town's economic growth. Elana for example may have been thinking about leaving the town but now she wants to stay and help build the Green town. This effect will be similar to people outside the town who will come for the very same purpose, building a green town.
  • There is an Opportunity to - Another reason to rebuild the town into a green town is simply because the opportunity has presented itself. The town was devastated and now there is a clean slate and canvass upon which to build upon. Why not seize the opportunity and build a green town. Building a green town in a town that still has buildings intact will mean tearing those down which will be expensive. Here, there is no need to worry about that.

<em>Reasons Against: </em>

  • Expensive - Going green is expensive because the tools required are quite pricey. Things like building a platinum green building or getting a more efficient furnace will definitely leave a dent in the town's purse and hit the tax payer hard which is worrisome as some of the residents just lost quite a few belongings and now have to rebuild their lives.
  • Priorities - The rebuilding of the town as a green town whilst commendable, should be done at the appropriate time and the question is whether now is the appropriate time. Businesses and homes were just destroyed and revenue streams hit as a result. There is the argument that the money to be spent on the green town should be redirected to help the businesses restart operations which will improve the town's tax base.
  • Decision is not Unanimous - Not everyone in the town agrees that it should be rebuilt as a green town. There seems to be opposition to it but the powers that be manipulate the meetings so that mostly those in favor get to voice their opinions which would signify that they had already made their decision. This is undemocratic and unfair because the town being rebuilt in a green manner will use the tax dollars of every resident and so they all need to be able to voice their opinions because it is their money and their town.

7 0
4 years ago
New Line Cinema is considering producing a new movie. To evaluate the proposal, the company needs to calculate its cost of capit
PilotLPTM [1.2K]

Answer:

a.

7.00%

b.

5.96%

c.

1.20%

Explanation:

a.

First and foremost, we need to determine the yield to maturity on the bond, using a financial calculator as shown thus:

The financial calculator should be set to its default end mode before making the following inputs:

N=20(number of semiannual coupons  in 10 years=10*2=20)

PMT=30(semiannual coupon=face value*coupon rate*/2=$1000*6%/2=$30)

PV=-1163.51(current price=$1,163.51)

FV=1000(face value of the bond=$1000)

CPT

I/Y=2.00%(semiannual yield=2%, annnual yield=2.00%*2=4.00%)

bond yield plus risk premium=bond yield(4.00%)+ risk premium(3%)

bond yield plus risk premium=7.00%

b.

In determining the midpoint range is the maximum plus minimum cost of equity divided by 2

Let us determine cost of equity using the Capital Asset Pricing Model and Constant Dividend Growth Model

cost of equity=risk-free rate+beta*(expected return on the market portfolio-risk-free rate)

risk-free rate=yield on Treasury bonds= 0.6%

beta=0.8

expected return on the market portfolio= 6%

cost of equity=0.6%+0.8*(6%-0.6%)

cost of equity=4.92%

cost of equity=expected dividend/share price+growth rate

expected dividend=last dividend*(1+growth rate)

expected dividend=$1.13*(1+4%)=$1.1752

share price= $39.17

growth rate=4%

cost of equity=($1.1752/$39.17)+4%

cost of equity=7.00%

midpoint range=(maximum cost of equity+minimum cost of equity)/2

midpoint rate=(7.00%+4.92%)/2

midpoint range=5.96%

c.

WACC=(weight of equity*cost of equity)+(weight of preferred stock*cost of preferred stock)+(weight of debt*after-tax cost of debt)

weight of equity= 20%

cost of equity=5.96%

weight of preferred stock=20%

cost of preferred stock=annual dividend/price

cost of preferred stock=$4.3/$135.26=3.18%

weight of debt=60%

aftertax cost of debt=4.00%*(1-34%)=2.64%

WACC=(20%*5.96%)+(20%*3.18%)*(60%*2.64%)

WACC=1.20%

8 0
3 years ago
Which describes a type of exchange that does not use money
HACTEHA [7]
Bartering is an exchange of goods where money is not involved
3 0
3 years ago
The year-end inventory shows $135,000 worth of merchandise available at retail prices. What is the cost of the ending inventory
anygoal [31]

Answer:

$78,300

Explanation:

COMPUTATION OF GOODS AVAILABLE FOR SALE AT COST

                                                                         $        

Beginning inventory                                  80,000

Purchases                                              <u>     65,000     </u>

Goods available                                 <u>      145,000     </u>    

COMPUTATION OF GOODS AVAILABLE FOR SALE AT RETAIL PRICE

                                                                         $        

Beginning inventory                                 130,000

Purchases                                              <u>    120,000     </u>

Goods available                                 <u>     250,000     </u>  

Ending inventory at cost = (Cost/Retail Ratio) x Year-end Inventory at retail price

                                         =($145,000/$250,000) x $135,000

                                          = 58% x $135,000

                                           = $78,300

                                                                                                 

6 0
3 years ago
Which sentence best describes how a low supply of apples would affect their cost?
blagie [28]
I think it's A.
If supply increases, cost decreases.
If supply decreases, cost increases.


I hope it helped you!
7 0
3 years ago
Read 2 more answers
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