<span>Government Revenue: the Sources. The governments in the US collect about $4.2 trillion
in a year income and payroll taxes. Income tax is where governments
collect the most tax: in federal, state, and local income tax they will
collect about $2.6 trillion in 2018.</span>
Answer:
Bootstrapping
Explanation:
Bootstrapping is a business term which means starting and growing a business or company without any external resources but personal resources of the entrepreneur such as personal savings, personal equipment like computers, personal landed property or space, etc. Such company or business started and expanded based on the personal resources of the entrepreneur and the income the business generated.
Advantages of Bootstrapping a company.
a. There is total control over such business with no external influence.
b. Careful resource management.
For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.
The difference between the lowest price (that
a firm would have been keen to accept) and the price it actually receives from
the sale of a product is called producer surplus.
<span>Producer Surplus is an economic
measurement. Total economic welfare is equal to the addition of consumer
surplus and producer surplus.</span>
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.