The correct alternative regarding tax revenue:
<u>B-Personal income tax is currently the largest source of government revenue in South Africa.</u>
<u>Direct </u><u>Taxes</u>
- it is levied on earnings and activities conducted.
- the burden of tax cannot be shifted in case of direct tax.
- it is paid directly by individual concerned.
- it is paid after the income reaches in the hands of the taxpayer
- Tax collection is difficult.
- instance income tax, wealth tax etc.
<u>Indirect </u><u>Taxes</u>
- it is levied on product or services.
- the burden of tax shifted for indirect taxes
- It is paid by way of one man or woman however he recovers the same from another person i.e. person who actually bear the tax ultimate consumer.
- it is paid before goods/service reaches the taxpayer.
- Tax collection is exceptionally easier
- Example GST, excise duty custom duty sale tax carrier tax
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Answer:
Option D. The lender is concerned with the loan applicant's need of financial assistance.
Explanation:
The reason is that the lender wants to know where the money the borrower will spend in order to have surety that the money will invested somewhere which will generate value above the amount of interest the person owes to the bank. If a person wants a loan of $500 from you because he wants to use that money in gambling then I am 100% sure if you are a wise person then you will not lend your friend $500. Bank is interested in following questions:
What is your credit number?
What is your Income?
For what purpose you require a loan?
Answer:
The correct answer is C
Explanation:
Free cash flow hypothesis is the one which is defined as the increase in the cash flow, which the agency costs of the firms or business with the opportunities of the poor investment. The management which exhausted the positive projects of NPV (Net Present Value), it proceeds in order to invest in negative NPV projects instead paying out the funds to the shareholders.
So, this hypothesis supports, in increasing or rising the portion of debt of the capital structure of the firm so that could increase the value of the firm.
Answer:
b) 4 years
b) 16%
Explanation:
The computation of cash payback period for this investment is shown below:-
Year Net Cash Flow Cumulative Net Cash Flow
1 $180,000 $180,000
2 $120,000 $300,000
($180,000 + $120,000)
3 $100,000 $400,000
($300,000 + $100,000)
4 $90,000 $490,000
($400,000 + $90,000)
5 $120,000 $610,000
($490,000 + $120,000)
The period of payback is the duration in which the investment is recovered. Investment amounts to $490,000 and the cumulative net cash flow after 4 years is $490,000. So, the payback period is 4 years.
Year Income from Operations
1 $100,000
2 $40,000
3 $40,000
4 $10,000
5 $10,000
Total $200,000
Average Income = $200,000 ÷ 5
= $40,000
Average Investment = ($0 + $490,000) ÷ 2
= $245,000
Average Rate of Return = Average Income ÷ Investment × 100
= $40000 ÷ $245000 × 100
= 16.33%
or
= 16%
In a free market economy, the market, not the government, determines prices. The interaction of producers and consumers determine the price in the market.
