Answer and Explanation:
E) to all firms, whether manufacturing or service.
Computer, its a larger amount of money to pay so it would be best there
Answer: D. 2.2%
Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.
Here, before-tax cash flow = $11,440
Acquisition price = $520,000
So Equity Dividend Rate =
X 100
Equity Dividend Rate = 2.2%
In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.
When a tax is placed on the buyers of cell phones, the size of the cell phone market <span>and the effective price received by sellers both decrease. When a tax is placed on the buyers of cell phones, the market doesn't really increase or decrease as those needing cell phones are still going to purchase and use them however the price that is received usually decreases because they aren't moving at a fast rate. It is likely that the amount of tax placed on them will have a say in how they increase or decrease within the market. </span>