Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
B. Make sure each main point is brief
Explanation:
Based on the answers provided within the question it can be said that answer that is not an effective principle for preparing main points is making sure each main point is brief. Main points need to be emphasized and thoroughly detailed as they are the most important aspects in a presentation. Only the subtopics may be made brief.
Answer:
The answer is B.
Explanation:
In purely competitive firms, there are many buyers and sellers that no single buyer or seller can influence the price of goods. They accept the price set by the market conditions which depend on the market supply and demand. Firms in this market are price-takers.
In monopolistic firm, no one is competing against him. He is the only one in the industry. He is the only seller while buyers are many. In most cases, buyers do not have alternative than to buy the product. Because of this, the firm in monopoly sets its price. He is a price-maker.
Answer:
C. Her marginal value of an additional bite of food has fallen to zero.
Explanation:
Marginal value is a concept used in understanding consumer choices and can be defined as the incremental value derived from consuming an additional unit of a product or service. Jenica's marginal value has fallen to zero since she does not derive any more value from consuming an additional bite of the remaining or uneaten portion of food.
Answer:
c. It refers to an increase in the average level of prices.
Explanation:
Inflation refers to a constant increase in the average prices of goods and services in the economy over time. Inflation means consumers will pay more for a similar basket of goods and services than they did in a previous period. Economists use Inflation as a measure of the rate at which the general prices are rising.
A high rate of Inflation without a corresponding rise in incomes erodes the purchasing power of households and firms. The consumer price index CPI is the common index used to measure the inflation rate. Should the inflation rate increase at a very high rate, governments, through the central bank, applies monetary policies to regulate it.