Answer:
Accounting can be tough. ... The course load is quite intense, with classes in mathematics, finance, business, and accounting. While some concepts can be challenging, by studying the material and taking the time to make sure you fully understand accounting principles, you can be successful.
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Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Answer:
A - If a bond sells at a discount, the yield to maturity is greater than the current yield
Explanation:
Yield to maturity is the expected return if the bond is held till maturity. Current yiled is the return if the bond is sold today. There is an evident relationship between yield to maturity (TYM) and the current yield.
“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).
According to the above statements, options C, B and D are eliminated. This leaves option A (If a bond sells at a discount, the yield to maturity is greater than the current yield) as the correct answer. This is true because YTM is calculated on purchase price rather than par value, if the purchase price is less than par value, the YTM will be greater than the current yield.
Answer:
0.5
Explanation:
Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.
Marginal propensity to consume = change in consumption/ increase in disposable income
$500 / $1000 = 0.5
I hope my answer helps you
Answer:
No,
Explanation:
The tax withholding system is something that most of us take for granted, but the concerned citizens, politicians and economists who have analyzed it have many criticisms of the system.
Taxpayers have no idea how much they pay and are apathetic about tax rates
If taxpayers had to make one large payment, they would know exactly how much they were forking over for federal taxes, Social Security taxes, Medicare taxes and state taxes. Since the money is taken gradually, many people never pay attention to the full amount, which makes it easier for high tax rates to persist and for the government to increase tax rates. For example, the state of California in 2009 decided to use the tax withholding system to take a large, interest-free loan from its taxpayers. It increased the withholding tax by 10%, and even journalists didn't seem to notice until the days before the rate hike was implemented. The government says it will refund the borrowed money in April.
