Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)
2. The higher after tax real gain is for Stephanie losing 35% of her income
which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.
Explanation
The inflation rate is not considered in the calculation because it's constant for both parties.
The condition will be excused because of ESTOPPEL. Estoppel is an obstruction which prevents a person from asserting a right or denying a fact. The obstruction is normally due to the person action, conduct or failure to act. The principal aim of estoppel is to prevent injustice due to inconsistency or fraud. Estoppel is of two types: equitable and legal estoppel.
Answer:
C. VL = VU + PV(Tax Shield) - PV(CFD)
Explanation:
The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.
Answer:
- 0.80
Explanation:
Price elasticity of demand describes the extent to which the quantity demanded of good X changes as result of a change in its own price.
The midpoint formula for price elasticity of demand is presented and used as follows:
Percentage change in quantity = %ΔQ = [Q2 - Q1] / [(Q2 + Q1) ÷ 2] × 100
Percentage change in quantity = %ΔP = [P2 - P1] / [(P2 + P1) ÷ 2] × 100
Midpoint price elasticity of demand = %ΔQ / %ΔP
Where:
Q2 = New quantity of good X = 150
Q1 = Initial quantity of good X = 100
P2 = New price of good X = $6
P1 = Initial price of good X = $10
Therefore,
Percentage change in quantity = %ΔQ = [150 - 100] / [(150 + 100) ÷ 2] × 100
= [50/(250 ÷ 2)] × 100
= (50/125) × 100
= 40.00%
Percentage change in quantity = %ΔP = [$6 - $10] / [($6 + $10) ÷ 2] × 100
= [-$4/($16 ÷ $2)] × 100
= (-$4/$8) × 100
= - 50.00%
Price elasticity of demand = 40% / 50% = - 0.80
The elasticity of demand of -0.80 less than 1. That indicate that the quantity demand is inelastic. That is the change in the degree of change in the quantity demanded of good X is lower than the degree of change in its price.
Answer:
a) 0.667
b) Yes
Explanation:
Data provided in the question:
Mean = 0.04 chip
Standard deviation, s = 0.003 chip
Lower Specification Limit, LSL = 0.034
Upper Specification Limit, USL = 0.046
Now,
a) Capability Index = ( USL - LSL ) ÷ ( 6 × s )
or
Capability Index = ( 0.046 - 0.034 ) ÷ ( 6 × 0.003 )
= 0.667
b) Cpk = min( [( USL - Mean) ÷ ( 3s ) , ( Mean - LSL) ÷ ( 3s ))
or
Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ), ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))
or
Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ), ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))
or
Cpk = min( 0.667, 0.667 )
Therefore,
Cpk = 0.667
as Cp and Cpk are equal
Hence, it is ideal condition and process is capable
