Answer:
Explanation:
Solution-
According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.
(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.
(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.
Answer and Explanation:
1. When there is high uncertainty in the market, there will be high yield spreads. This is because the higher the risk the higher the profit or compensation for risk
2.preferred stock positions pay more consistent dividends that common stock positions and also pay higher than bonds.
3.Accelerated depreciation is depreciation method in accounting that deducts higher depreciation expenses in the early life of an asset therefore leaving the company to pay less taxes on these assets and more cash flow. Increased cash flow consequently encourages and leads to more investment
Answer:
Quality.
Explanation:
Garvin´s definitions of quality based on the perspective of the viewer (perception is reality):
-Transcendent. quality is intuitively understood but nearly impossible to communicate.
-Product based. quality is found in the components and attributes of a product.
-User based. if the costumer is satisfied, the product has good quality.
-Manufacturing based. if the products conforms to desing specifications, it has good quality.
-Value based. if the product is perceived as providing good value for price, it has a good quality.
Garvin´s dimensions of product quality are:
Performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality.
These different dimensions of quality are not mutually exclusive.
Answer: Commodity Money
Explanation:
Commodity money is used to describe goods that have an intrinsic value that enable them to be used as a medium of exchange for goods and services. For a good to be used as commodity money, it should be rare and easily exchangeable.
Examples of goods that have been and can be used as commodity money include gold, silver, alcohol and cigarettes with cigarettes being especially popular in prison.
Answer: $19.82
Explanation:
The price the investor would be willing to pay today would be the present value of the dividends and the selling price at the end of 2 years using the required return as the discount rate.
= 1.50 / (1 + 8%) + 1.50 / (1 + 8%)² + 20 / (1 + 8%)²
= 1.3888889 + 1.286 + 17.1467764
= $19.82
