Efficiency will undoubtedly suffer if the US government increases assistance payments to the poorest Americans while raising income taxes on the wealthiest Americans and an increase in inequality.
<h3>What will happen if the U.S. raises taxes on the wealthiest Americans?</h3>
Every society must choose between equality and productivity. If the US government increases assistance payments to the poorest Americans while raising income taxes on the wealthiest Americans, the outcome will probably be a decline and increased inequality in the United States.
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In order for the hitch ball to be secured
properly, the last part which is assembled is nut.
<span>One should
keep in mind that hitch ball and coupler for towing the boat must be of the
same size. The standard size of hitch ball nowadays is about 2 inch. There is a
proper method in order to install the hitch ball properly so that it will be
secured.</span>
Answer:
Explanation:
The cost of equity can be estimated using two (2) different models:
- <em>The Dividend Valuation Model</em>
- <em>The capital asset pricing model (CAPM)</em>
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
The model is stated below as follows
P = D(1+g)/ke-g)
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
</em>
<em>This model is considered superior to DVM. Hence, we will use the CAPM</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.86%, Rm-Rf - 7.00 β- 1.23
E(r) = 2.86% + 1.23× 7%
= 2.86% + 8.61%
= 11.47
%
Cost of equity= 11.47
%
Answer and Explanation:
Year 1 Dividend = 1.04
Year 2 Dividend = 1.08
Year 3 Dividend = 1.12
Year 3 Sale of Stock = 14.62
Year 1 Total Cash Flow = 1.04
Year 2 Total Cash Flow = 1.08
Year 3 Total Cash Flow = 15.74
Complete Question:
Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the following medical expenses.
Drugs and medicines prescribed by doctors $300
Health insurance premiums $750
Doctors' fees $2,250
Eyeglasses $75
How much medical expense can he deduct as itemized deduction?
Answer:
Jon
Medical expense that Jon can deduct as itemized deduction:
= $375
Explanation:
a) Data and Calculations:
Adjusted gross income = $40,000
Incurred medical expenses:
Drugs and medicines prescribed by doctors $300
Health insurance premiums $750
Doctors' fees $2,250
Eyeglasses $75
Total = $3,375
Under Tax Cuts and Jobs Act (TCJA), the medical expenses which can be deducted as an itemized deduction on the federal income tax return are only to the extent that they exceed 7.5% of adjusted gross income (AGI).
7.5% of $40,000 = $3,000
Therefore, Jon can itemize deduction of $375 in medical expense.
