Answer:
1
It's because limited powers of government ensures that there is no misuse of power for profit making business because it will not help them achieve economic goals and community property distributes the equal shares among workers and economic freedom provides the company to have freedom to expand its community business so that profit making businesses can stop
Answer:
Option B
Present an overview of a longer report for people who may not have time to read the entire document.
Explanation:
An executive summary is a summary which contains the key points of a lengthy report, in a concise manner that can easily be digested by a reader without much effort.
The purpose of having an executive summary in a business report is to make it easy for your intended audience to get the key points of what your report is talking about in a quicker manner, rather than having to read the whole report.
Answer:
increases consumption in both periods.
Explanation:
A normal good is any product or service whose demand increases as consumers' income increases. The demand for a normal good will also increase due to the improvement in economic conditions in an economy.
A normal good is regarded to be of high utility value. Its consumption provides consumers with greater satisfaction. As a result, if consumer's income increase, demand for normal goods increases. Should consumption increase in a period, the demand will increase. The demand will continue to rise if incomes increase.
John most likely lives in a<u> "planned economy".</u>
A planned economy is a sort of financial framework where venture and the assignment of capital merchandise happen as per vast monetary and creation designs. A planned economy may utilize brought together, decentralized or participatory types of financial planning. A planned economy is a monetary framework in which the administration controls and manages generation, dispersion, costs, etc.
Answer:
a) $0.5145 million
b) $7.35 million
Explanation:
Given:
Permanent debt outstanding = $35,000,000
Expected marginal tax rate = 21%
a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.
To find annual interes tax shield use the formula below:
Annual interest tax shield =Total par value of Debt × interest rate × tax rate
= $35,000,000 × 7% × 21%
= $35,000,000 × 0.07 × 0.21
= $514,500
Annual interest tax shield = $0.5145 million
b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?
Use the formula:
Present value of the interest tax shield = Annual interest tax shield /loan interest rate
= $514,500 / 7%
= $7,350,000
present value of the interest tax shield = $7.35 million
