I don’t know my name I don’t play by the rules of the game so you do say I’m not trying
Answer:
The answer is option 3:
Progressive
Explanation:
The overall federal tax system is progressive, with total federal tax burdens a larger percentage of income for higher-income households than for lower-income households.
Individual income taxes are an example of progressive tax structure.
Progressive tax are the tax for which the percentage of income paid in taxes increases as income increases.
A tax determined by an individual's income from all sources are called Individual income tax.
Answer:
A. 5.56%
B. 13.55%
Explanation:
In this question, we are asked to calculate the equity cost using the DCF method and the SML method
A. DCF approach
cost of equity =[ D0(1+growth )/ current price] +growth
= [.40 (1+.05) / 70 ] + .05
= [ .42 / 75] + .05
= .0056 +.05
= 0.0556 same as 5.56%
B)SML approach
Cost of equity = Rf +Beta (Rm-Rf)
= 5.8+ 1.25 (12 -5.8 )
= 5.8+ 1.25 *6.2
= 5.8 + 7.75
= 13.55%
