What type of fiscal policy calls for a decrease in government spending and an increase in taxes?
1 answer:
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Answer:
14.90%
Explanation:
We know,
Current stock price, =
Given,
Current stock price, = $12.00
growth rate, g = 9.50% = 0.095
Expected annual dividend, = $0.65
We have to determine the expected rate of return ().
Putting the values into the above formula, we can get,
Current stock price, =
or, $12.00 = $0.65 ÷ ( - 0.095)
or, $12.00 × ( - 0.095) = $0.65
or, - 0.095 = $0.65 ÷ $12.00
or, - 0.095 = 0.0542
or, = 0.054 + 0.095
Therefore, = 0.149
The expected rate of return = 0.149 or 14.90%
Answer : The new tax payment when he saves 8 % tax this year is, $3680
Explanation :
As we are given that,
Original property tax paid by a man = $4000
Percent rate of saving tax = 8 %
First we have to calculate the amount of tax he saved.
Amount of tax he saved =
Amount of tax he saved =
Amount of tax he saved = $320
Now we have to calculate his new tax payment when he saves 8 % tax this year.
New tax payment = Original property tax - Amount of tax he saved
New tax payment = $4000 - $320
New tax payment = $3680
Thus, the new tax payment when he saves 8 % tax this year is, $3680