Answer: True
Explanation:
Marginal externality is constant. However, it may not be calculated with accuracy. Hence, there's need for estimates at reasonable levels.
Hence, the policymaker's estimate of $35/ unit is reasonable and within the acceptable range of between $10 and $50/unit. Also, the tax charge raises social welfare compared to no tax at all.
Answer:
$20.80 and $29.61
Explanation:
The computations are shown below:
Current price is
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $1.20 + $1.20 × 4%
= $1.20 + $0.048
= $1.248
So, the current price is
= $1.248 ÷ (10% - 4%)
= $20.80
Now the price in 10 years is
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $1.20 × 1.04^10
= $1.20 × 1.4802442849
= $1.7762931419
So, the price in 10 years is
= $1.7762931419 ÷ (10% - 4%)
= $29.61
Answer:
C) budget constraint
Explanation:
The budget constraint is a graph of all the combinations of goods and services a consumer can purchase given prices and income of the consumer.
The absolute slope of the budget constraint is the relative price of the two goods represented on the graph.
I hope my answer helps you
Answer:
By 110,000 the retained earnings reduced by the property dividend.
Explanation:
Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.
For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.
So, the calculation is computed below:
As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e. 50,000 shares ÷ 10 shares = 5,000 for 1 share.
Now, multiply by market value which comes = 5,000 × $22 = $110,000.
So, by 110,000 the retained earnings reduced by the property dividend.
Investment banks help companies to purchase, sell and make investments using bonds while commercial banks are concerned on managing deposits on both savings and checking account.
Investment banks aid companies on bringing their investments on public offers; commercial banks are focused on providing security for the clienteles money.
Investment banks have some degree of freedom in choosing their own strategies while commercial banks have more risks because they are open to public transactions.
