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3 years ago

Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the

Business

1 answer:

Leviafan [203]3 years ago

6 0

Answer:

b. demand in more elastic than the supply.

Explanation:

Elasticity is defines as the measure of responsiveness of quantity demanded and supplied to changes in price.

In a situation where demand is more elastic than supply and tax is imposed, the suppliers can bear more cost due to tax without the quantity changing by much.

On the other hand when taxes are applied if sellers want to move it to buyers that have elastic demand, it will result in a big fall in the quantity demanded.

So the seller's bear the cost in this scenario because demand is elastic and will fall with small price increase.

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Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 per

vesna_86 [32]

Answer:

13.05%

Explanation:

Using CAPM Equation, Ke = Rf+Beta*(Rm-Rf)

= 0.045+1.3*(0.07)

= 0.136

= 13.60%

Using Dividend growth model, Ke = (D1/P0) + g

= (D0*(1+g)/P0) = g

= (1.50*(1+0.08)/36) + 0.08

= 0.125

= 12.50

The cost of equity (Ke) = 0.136 + 0.125 / 2

The cost of equity (Ke) = 0.261/2

The cost of equity (Ke) = 0.1305

The cost of equity (Ke) = 13.05%

7 0

3 years ago

Oscar refuses to pay petra $500 in cash on their contract to repair oscar's washing machine, which petra still possesses at her

musickatia [10]

For the answer to the question above, I think the answer is that
petra's lien on the machine will terminate if and only if Petra would voluntarily surrender possession.

I hope my answer helped you. Have a nice day!

6 0

3 years ago

Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o

vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0

3 years ago

Jim is researching different sources to fund his college education. Jim is torn between a federal loan and a private loan. With

Colt1911 [192]

The right answer for the question that is being asked and shown above is that: "A. Jim should choose the federal loan since he will not have to pay interest if he attends a public university." the loan should Jim choose is that he should choose the federal loan since he will not have to pay interest if he attends a public university.

3 0

4 years ago

As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system?A) The web-

m_a_m_a [10]

Answer:

the correct answer is C

Explanation:

As described in the chapter case, which of the following constitutes a managerial element of the UPS tracking system?

C) The decision to use automation

8 0

3 years ago