The basis for this argument is that consumption tax takes a larger percentage of income from low income earners than from high income earners. This is because consumption tax is uniformly applied to all people irrespective of their situation.<span />
Answer:
If we assume that the company does not have any required rate of return or discount rate associated to the lease payments, then the company should lease the equipment because the differential revenue will be higher ($214,200 ˃ $207,000).
Explanation:
the differential revenue if the equipment is leased:
total lease payments - associated costs = $290,000 - $75,800 = $214,200
the differential revenue if the equipment is sold:
selling price - sales commission = $230,000 - $23,000 = $207,000
If we assume that the company does not have any required rate of return or discount rate associated to the lease payments, then the company should lease the equipment because the differential revenue will be higher. The problem is that in the real world this never happens since the company should discount the lease payments since one dollar today is worth more than one dollar tomorrow. Since we are not given any discount rate, we must assume it is 0.
Answer:
2.1%
Explanation:
The computation of continuously compounded risk-free rate of return is shown below:-
Continuously compounded risk-free rate of return = -In(number)
= -ln((38 + 3.60 - 2.01) ÷ 40) ÷ (6 ÷ 12)
= 0.020605786
or
= 2.1%
For a better explanation, kindly find the spreadsheet as attached.
Hence we have applied the above formula to reach the continuously compounded risk-free rate of return.
Answer:
Material quantity variance
= (Standard quantity - Actual quantity) x Standard price
After the adjustment for missing order
Material quantity variance
= (1.25 x 5,000 - 6,200) x $1.50
= $ 75( F)
The correct answer is A
Explanation:
Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is standard quantity per unit multiplied by units made. Since the units made are now 5,000 units. Standard quantity will be 1.25 multiplied by 5,000 units.
Answer: Burkhardt Corp.'s current share price is $69.47.
The current share price of a stock can be viewed as the present value of its expected dividends.
In this case, the stock price will be the sum of the discounted value of the dividends over each of the next eight years.
Mathematically we can express this as:
Substituting the values we get,
Solving the above equation we get,
