Answer: Maturity
Explanation:
The treasury yield curve plots the yields on treasury notes and bonds relative to the *maturity " of the securities.
The US treasury yield curve compares the yield of short term treasury bills with that of long term treasury bill notes and bonds. In the US the treasury department issues treasury bills for terms less than one year, for terms of two, three, five and ten years. It also issue bond for 20 to 30 years.
Answer:
differential analysis:
No further process Process further Differential
amount
Sales revenue $410,000 $1,213,400 $803,400
Production costs ($340,000) ($580,000) ($240,000)
Operating income $70,000 $633,400 $563,400
The company should process further and sell products B and C because its operating income will increase by $563,400.
Answer:
D
Explanation:
Unavoidable fixed manufacturing cost is irrelevant as to Shasta Company’s decision to Make or Buy that particular component. It is because, either of their decision, said expense will still incur and it is still form part of their expenses. The only things that will matter to their decision making if that certain expenses will cause changes (decrease in particular) of the potential cost to be incurred by the company that will result to increment their income.
Answer:
The correct option is B,$29.05
Explanation:
The required rate of return is can be computed using Miller and Modgiliani CAPM formula below:
Ke=Rf+Beta*Mrp
Ke is the cost of equity which is unknown
Rf is the risk free rate of 3.00%
Mrp is the market risk premium of 5.50%
Beta is 1.2
Ke=3.00%+(1.2*5.50%)
Ke =9.6%
The current price of the common stock is the present value of dividends payment and stock price(terminal value) as shown below discounted with Ke of 9.6%
Year 1 $1.25*(1+25%)=$1.56
*1/(1+9.6%)^1=$1.43
Year 2 $1.56*(1+25%)=$1.95
*1/(1+9.6%)^2=$1.63
Year 3 $1.95*(1+25%)=$2.44
*1/(1+9.6%)^3=$1.85
Year 4 $2.44*(1+25%)=$3.05
*1/(1+9.6%)^4=$2.11
Terminal value=year 4 dividend/ke=$3.05/9.6%=$31.79*1/(1+9.6%)^4=$22.03
Total present values=$1.43
+$1.63+$1.85
+$2.11
+$22.03=$29.05
Answer:
A) which the average rate increases as income increases.
Explanation:
A progressive tax is a tax that increases in tax rate as the taxable amount increases. The tax is termed "progressive" because it refers to the increment or progression of the tax rate from low to high, which by implication means that a taxpayer's average tax rate is less than the person's marginal tax rate.
Another term that describes the progressive nature of income taxes particularly in developed economies like the United states and United Kingdom, is the acronym P.A.Y.E which means Pay As You Earn. Ta payers are expected to pay higher tax rates for higher income brackets
