The government is the one responsible in regulating the monopolies in order to protect the consumers' interests. They can grant a patent or a public franchise to a company making them the exclusive and legal producer of a certain goods and/or services.
Answer:
Rate of interest = 6/60% = 10%
Explanation:
Net rate of bonds after tax will be = Rate of interest X (1 - Tax)
Heflin bond = 6% X (1 - 40%) = 3.6%
Surething Bond = 9% X (1 - 40%) = 5.4%
Since both bonds provide interest and Surething provides more than Heflin
then in order to make both incomparable Surething can decrease the rate of interest to that of Heflin so that Hugh remains indifferent will be 6%
In case there is no tax on Heflin Bond, as Hugh is in 40% marginal tax bracket, then net interest = 6 %
But for Surething Hugh will have to pay tax then after tax value of interest shall be 6% i.e. 6% = 1 - 40%
Rate of interest = 6/60% = 10%
Surething needs to pay Interest @10% on bonds. to make Hugh indifferent of both the bonds.
Answer:
IRR = 14.59%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = -$1,100
Cash flow in year 1 = $325
Cash flow in year 2 = $325
Cash flow in year 3 = $325
Cash flow in year 4 = $325
Cash flow in year 5 = $325
IRR = 14.59%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
In the quantity discount model, the optimum quantity is not always be found on the lowest total cost curve. Therefore, it's false.
<h3>What is optimum quantity?</h3>
It should be noted that optimum quantity simply means the economic quantity that is purchased.
In this case, in quantity discount model, the optimum quantity is not always be found on the lowest total cost curve. Therefore, it's false.
Learn more about optimum quantity on:
brainly.com/question/17192219
Answer:
Its true hope this helps :D