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Crank
3 years ago
6

What are two ways that a person's wealth may be taxed? Describe these taxes.

Business
1 answer:
Arturiano [62]3 years ago
4 0
Here are the answers to the question above. The two ways that a person's wealth may be taxed according to the following: 
Estate taxes are taxes levied on a person’s estate when that person dies. Inheritance tax is a tax on the property or assets that someone has passed on to <span>another. Hope this answers your question.</span>
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What economic benefit has the debt reschedule for developing countries?
diamong [38]

Answer:

The main economic benefit that debt rescheduling has for developing countries is that it changes principal and interest payments to more favorable conditions.

This means that after the reschedule, developing countries will have to put less resources into the payments of public debt, which allows them to have more resources available for other public investments like education, healthcare, and infraestructure.

8 0
3 years ago
In perfect competition, each additional unit of output that a firm sells will yield a marginal revenue that is:
il63 [147K]

Answer:

The correct answer is equal to price.

Explanation:

A perfectly competitive firm is a price taker. This is because of the large number of firms, no single firm is able to influence the price. So each firm faces a horizontal demand curve. This horizontal line shows demand, marginal revenue, and average revenue.  

The price level is determined at the point where the marginal cost is equal to price. The marginal revenue is always equal to price because the price is fixed at a point, each output level is supplied at the same price.

4 0
3 years ago
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced
mariarad [96]

Answer:

A) according to put call parity:

price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]

put = $8.89 - $120 + [$120 / (1 + 8%)¹/⁴] = $8.89 - $120 +$117.71 = $6.60

B) you have to purchase both a put and call option ⇒ straddle

the total cost of the investment = $8.89 + $6.60 = $15.496, this way you can make a profit if the stock price increases higher than $120 + $6.60 = $126.60 or decreases below than $120 - $6.60 = $113.40

3 0
3 years ago
The current price of a non-dividend-paying stock is $40. Over the next year it is expected to rise to $42 or fall to $37. An inv
jek_recluse [69]

Answer:

D. $0.93

Explanation:

Upmove (U) = High price/current price

                    = 42/40

                    = 1.05

Down move (D) = Low price/current price

                          = 37/40

                          = 0.925

Risk neutral probability for up move

q = (e^(risk free rate*time)-D)/(U-D)

  = (e^(0.02*1)-0.925)/(1.05-0.925)

  = 0.76161

Put option payoff at high price (payoff H)

= Max(Strike price-High price,0)

= Max(41-42,0)

= Max(-1,0)

= 0

Put option payoff at low price (Payoff L)

= Max(Strike price-low price,0)

= Max(41-37,0)

= Max(4,0)

= 4

Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)

                               = e^(-0.02*1)*(0.761611*0+(1-0.761611)*4)

                               = 0.93

Therefore, The  value of each option using a one-period binomial model is 0.93

8 0
3 years ago
On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of re
rodikova [14]

Answer:

March 15                 Debit                Credit

Dividends                $22,470,000

Dividends Payable                         $22,470,000

March 30     No entry

April 13

Dividends Payable   $22,470,000

Cash                                                 $22,470,000

Explanation:

In order to record American Eagle's declaration and payment of cash dividends for its 214 million shares first we would require to calculate the dividends as follows:

Dividends=214,000,000 shares*$0.105

Dividends=$22,470,000

Therefore, the journal entries would be the following:

March 15                 Debit                Credit

Dividends                $22,470,000

Dividends Payable                         $22,470,000

March 30     No entry

April 13

Dividends Payable   $22,470,000

Cash                                                 $22,470,000

7 0
3 years ago
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