Answer:
Here all of these options are wrong , the correct answer is regardless of how the tax is levied the burden of tax would be shared by both the seller and buyer.
Explanation:
Tax can be said as primary source of income for the government. When a tax is levied on the goods , the burden of that would have to be bear by both buyer and seller , irrelevant of how that levied . If the taxes are high then the demand by buyer would be less and seller would receive low price because less people would buy and n the case where taxes are low demand would be high and seller would receive high prices ,in both cases tax would be levied on both seller and buyer and how much it would be depends upon the elasticity of demand and supply. So all the statements given here are false or invalid.
Answer:
The effective rate of protection for the U.S. steel industry is approximately 17.5%
Explanation:
Mathematically, the effective rate of protection is calculated as follows;
e = (n-ab)/(1-a)
where n is the nominal tariff rate on the final product , a is the ratio of the value of the imported input to the value of the finished product and b is the nominal tariff rate on the imported input
Mathematically;
a = value of iron ore/value of steel = 100,00/500,000 = 1/5 = 0.2
From the question, we can see that nominal tariff rate for steel n = 15% = 15/100 = 0.15
The nominal rate for iron ore b = 5% = 5/100 = 0.05
So we substitute all of these into the equation of e above
e = {0.15-0.2(0.05)}/(1-0.2) = (0.15-0.01)/0.8 = 0.14/0.8 = 0.175 which is same as 17.5%
Answer:
D. 13,000.
Explanation:
The computation of the equivalent units of direct materials for April month is given below
= Number of units completed + ending units remained in production × completion percentage
= 9,000 units + 4,000 units × 100%
= 9,000 units + 4,000 units
= 13,000 units
All the other information that is mentioned is not relevant. Hence ignored it
Answer:
(i) $26.49375
(ii) $29.11
(iii) 52.54%
Explanation:
Required rate of return using CAPM model:
= risk free rate + beta (expected return - risk free rate)
= 0.06 + 2.3 (0.15 - 0.06)
= 0.267 or 26.7%
Growth rate = (1 - dividend payout ratio) × ROE
= (1 - 0.45) × 0.18
= 0.099 or 9.9%
a)
Dividends per share will be $4.05 since payout ratio is 45%
Intrinsic value of share = D1 ÷ (Rate - growth)
= 4.05(1.099) ÷ (0.267 - 0.099)
= 4.45095 ÷ 0.168
= $26.49375
b)
Price after 1 year = 26.49( 1 + 0.099)
Price after 1 year = $29.11
c)
One year holding period return = ( $29.11 + 4.45 - 22) ÷ 22
= 0.5254 or 52.54%