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nexus9112 [7]
3 years ago
8

The nature of the tax system means that there is usually a trade-off between ___ and ___.

Business
1 answer:
IgorC [24]3 years ago
5 0

Answer:

<u>equity and efficiency</u>

Explanation:

Under the tax system there is no tax on losses. And also the losses can be carried forward and set off to profits in future.

When profits are earned the taxes are paid. After that the remaining profit is either distributed to equity or retained for future purposes.

The more efficiently the company works, higher will be the profit and higher will be the taxes.

As profit is for equity, and from that share the amount is given to tax authorities, which is some part of income, share of equity to tax.

Though it does not provide for right in company, but it is legal to pay the tax.

That is the price you pay for increasing or decreasing efficiency, in the form of income available for equity.

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You own a portfolio equally invested in a Rf asset and two stocks. If one of the stocks has a beta of 1.85 and the total portfol
12345 [234]

Answer:

1.15

Explanation:

If investment is made in equal proportions, it means that;

weight in risk free ; wRF = 33.33% or 0.3333

Let the stocks be A and B

weight in stock A ; wA = 33.33% or 0.3333

weight in stock B; wB = 33.33% or 0.3333

Beta of A; bA = 1.85

Let the beta of the other stock be represented by "bB"  

Beta of risk free; bRF = 0

Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "

The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;

wP = wAbA + wBbB + wRF bRF

1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)

1 = 0.6166 +0.3333bB + 0

1 - 0.6166 = 0.3333bB

0.3834 = 0.3333bB

Next, divide both sides by 0.3333 to solve for bB;

bB = 0.3834/0.3333

w=bB = 1.15

Therefore, the beta for the other stock would be 1.15

5 0
3 years ago
In which basic market would stoves be traded?
VashaNatasha [74]

Answer:

<h3>the labor market</h3>

Explanation:

<h2>#carry on learning</h2>
4 0
2 years ago
How to writ introduction to a business plan
Sergeu [11.5K]

Answer:

The plan which is prepared by manager or owner for their business to attain the certain objectiveis known as business plan

4 0
3 years ago
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Answer:

1) i would react very good..that's a pretty food credit score

4 0
3 years ago
Innovative Products reported net income of $222,000. Beginning and ending inventory balances were $45,000 and $46,000, respectiv
Vlad [161]

Answer:

net operating cash flows = $218000

Explanation:

given data

net income = $222,000

Beginning  inventory = $45,000

ending inventory = $46,000

Beginning  Accounts payable = $38,500

ending Accounts payable = $35,500

to find out

net operating cash flows

solution

first we get here Increase in Inventory that is

Increase Inventory = ending inventory - Beginning inventory .......................1

put here value

Increase Inventory = $46,000 - $45,000

Increase Inventory = $1000

and

Decrease in Accounts payable will be here as

Decrease in Accounts payable = Beginning Accounts  payable - ending Accounts payable        ........................2

put here value we get

Decrease in Accounts payable =  $38,500 - $35,500

Decrease in Accounts payable =  $3000

so net operating cash flows will be

net operating cash flows = Net Income - Increase  Inventory - Decrease in Accounts payable      .......................3

put here value

net operating cash flows = $222,000 - $1000 - $3000

net operating cash flows = $218000

8 0
3 years ago
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