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3 years ago

Here are data on two companies. The T-bill rate is 5.8% and the market risk premium is 7.4%.

Business

1 answer:

cupoosta [38]3 years ago

5 0

Answer:

18.38% and 13.2%

Explanation:

As we know that

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

So for Discount store, it is

= 5.8% + 1.7 × 7.4%

= 5.8% + 12.58%

= 18.38%

And for everything store, it is

= 5.8% + 1.0 × 7.4%

= 5.8% + 7.4%

= 13.2%

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

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In a certain jurisdiction caroline, who is earning $42,200, currently pays a flat percentage of 25% income tax. The tax authorit

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The amount of tax paid less by Caroline as per the new taxation policies will be $950 over her annual salary of $42,200 after the taxes are applied assuming deductions being made.

The calculation of tax saved by Caroline will be done on the basis of comparing the taxation rates of both the policies after taking the changes into account.

<h3>Calculation of tax savings</h3>

The formula for calculation of tax will be done as follows when the taxes are charged on flat basis under the old policy,

$\rm Income\ Tax= Salary\ x\ Rate\ of\ Taxation\\\\\rm Income\ Tax= 42200\ x\ {\dfrac{25}{100}\\\\\\\\\\\\\\rm Income\ Tax= \$10550$

The taxation for the first $20000 as per the new policy will be

$\rm Income\ Tax\ Threshold= 20000\ x\ \dfrac{15}{100}\\\\\rm Income\ Tax= \$3000$

Calculating further taxation,

$\rm Income\ Tax= 22200\ x\ \dfrac{30}{100}\\\\\rm Income\ Tax= \$6600$

So, total taxation as per the new policy will be $9600. Now comparing the taxation of old scheme with new scheme, we get,

$\rm Income\ Tax\ Savings= Old\ Taxation - New\ Taxation\\\\\rm Income\ Tax\ Savings=10550-9600\\\\\rm Income\ Tax\ Savings=950$

So, the total taxes saved are $950 when the taxation rate changes.

Hence, the correct statement is that tax savings of $950 is possible when the authorities change the taxation rates to such slab rates by Caroline.

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2 years ago

the Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence,

Marat540 [252]

Answer:

Human resources (HR).

Explanation:

The Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is Human resources (HR).

Human resources (HR) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of managing and improving the welfare and working conditions of the employees working in an organization.

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2 years ago

A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The c

elena-s [515]

Answer:$49,350

Explanation:

The total cost of direct labor for the month will be:= 940 units × 3.5 × $15= $49,350

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1 year ago

The total consumer surplus for good X can be calculated in all ways EXCEPT as:

Oliga [24]

Answer:

B. the area bounded by the demand curve for X and the two axes

Explanation:

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2 years ago

Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead ra

Eddi Din [679]

The factory overhead allocated per unit of Product A in the Painting Department is $ .

Given,

Overhead Total direct DLH per product

Labour Hours A B

Painting dept. $241000 10500 8 11

Finishing dept. $69700 10500 5 6

Totals $311400 21000 13 17

Single overhead rate per hour = total overheads/ total labor hours

Now, substituting the values in the formula

Single overhead rate per hour = 311400/21000

= $14.83 per labor hour

Now, direct labor hours for product A for the Painting department = 16 hours

Overhead rate per unit of product A in the painting department = 16 hours × $14.83 per hour

Overhead rate = $237.28 per unit

Thus, Adirondak Marketing Inc. would allocate $237.28 to the painting department for 1 unit of Product A.

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2 years ago