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3 years ago

What is the incidence of a tax?

Business

1 answer:

kap26 [50]3 years ago

5 0

The incidence of a tax is the final burden of a tax.

Explanation:

Taxation has an impact and incidence to a citizen.

To differentiate between a direct and indirect tax, the incidence is taken into consideration.

A direct tax has an impact and is incidental to one person who the tax payer(usually an employee).

An indirect tax has an impact on a tax payer but its incidence may or may not be transferred to the tax payer. Which means the tax payer may transfer the incidence of the tax to another person(usually the final consumer).

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A stock price with no dividends is $50 and the strike price of a 1-year European put option is $54. The risk-free rate is 5% (co

Murljashka [212]

Answer:

Lower Bound (Minimum Value) of Put Option = Max. of ( 0 , S * E-rt - C) (In Bold is PV of S)

where, C = Spot Price / Current Price , S = Exercise Price/ Strike Price, Rf= Risk free rate , t is tenure in pa, E is Exponential

= Max. of (0, 30 * E-rt - 35)

= max. of (0, 28.5 - 35) = Max of (0, -6.5)

Thus 0 is the Minimum Bound.

At below 0 say -0.1 (Impracticle Put Buyer will never receive OP)

At Above 0 say 0.1; Gain/ Loss = PV of 30 -35 - OP =28.85 -35 - 0.1 = -6.25 Loss i.e No Arbitrage Opportunity.

Explanation:

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3 years ago

The supply of "cash" (paper and coin) is produced by the U.S. Mint and the Bureau of Engraving, but the _________________ contro

maksim [4K]

Answer:

Federal Reserve

Explanation:

The Federal Reserve (FED) distributes new currency through its 12 Federal Reserve Banks. Depository institutions (e.g. savings bank, commercial bank, savings and loan association, or credit union) buy currency from the Federal Reserve Banks when they need extra cash and they deposit cash when they have too much cash.

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4 years ago

Read 2 more answers

What would you expect to happen to the mix between internal financing (where companies use their own funds such as retained earn

valentinak56 [21]

Answer:

With the large increase in financial market uncertainty, the mix between internal financing and external financing for new investment projects will tether towards internal sources of funding.

Explanation:

This means that the larger proportion of finance for new investment projects must come from internal sources rather than external sources. The companies will, therefore, experience much more pressure to generate and retain sufficient profits than it would have experienced otherwise. While this looks like the best way to go, the possibility of success depends on the chunk of the internally-generated funds that the companies already have.

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3 years ago

A company that is looking at customer trends, its competitors, and the economy to see if there are any threats or opportuntities

Vesna [10]

Answer: A company that is looking at customer trends, its competitors, and the economy to see if there are any threats or opportuntities on the horizon, and also examines its production policies and sales histories to determine its strengths and weaknesses, is conducting a SWOT analysis.

Explanation:

SWOT is basically the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is a very effective tool used in the business industry to form strategies. You summarized the data from internal factors to discover your strengths and weaknesses. You use the external factors to identify the threats and opportunities.

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3 years ago

Your buyers love the 1891 victorian they have under contract, but they want to get both the water and the paint tested as soon a

Gnesinka [82]

In both water and paint the buyers are testing the lead in the 1891 Victorian coin.

Queen Victoria was born in 1819 and ruled United Kingdom from 1837 – 1901. As one of the most notable British Monarchs, Queen Victoria's reign resulted in a number of popular and collectible gold and silver coins.

The 1891 Victorian penny is considered worth more than Bitcoin. On a gram for gram basis, the price paid by the anonymous buyer made it around 100 times more valuable than gold.

Hence, in order to check the lead, the buyers want to get both the water and the paint tested.

To learn more about Victorians here:

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1 year ago