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3 years ago

11

Why might increasing taxes increasing taxes as a fiscal policy be a more difficult policy than the use of monetary policy to slo

w down an economy experiencing inflation?

1 answer:

Ratling [72]3 years ago

6 0

Answer:

The legislative process experiences longer delays than monetary policy.

Explanation:

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Eastland’s government has a total national debt of $500 million, which is financed as follows: $100 million is held by other gov

luda_lava [24]

Answer:

The public debt owed by Eastland is $400 million

Explanation:

In this question, we are asked to calculate the amount of public debt in Eastland.

Public debt refers to the amount of money owed by a country to external borrowers.

It doesn’t include such debt that the country owes itself. For example, debts owed by one agency of government to another.

Hence to calculate the public debt of Eastland, we add the amount of debts owed by citizens of Eastland + Amount of debts owed by foreign citizens in Eastland .

Amount of debt owed by citizens of Eastland is $200 million while the amount of debt owed by foreign citizens is also $200 million.

Mathematically the public debt will be ; $200 million + $200 million = $400 million

4 0

2 years ago

What does the last paragraph in a cover letter deal with ?

scoundrel [369]

Answer:

contact

Explanation:

The closing paragraph of a cover letter is where you can mention your contact information and request for an interview.

4 0

3 years ago

Dabney Electronics currently has no debt. Its operating income is $20 million and its tax rate is 40%. It pays out all of its ne

ValentinkaMS [17]

Answer:

$29 per stock

Explanation:

WACC=PBIT*(1-tax)/Market value of firm

10%=$20,000,000*(1-40%)/Market Value of the firm

Market Value of the firm=$20,000,000*60%/10%=$120,000,000

Stock price for all shares=$120,000,000*60%=$72,000,000

Stock price per share=$72,000,000/2,500,000=$29 per share

6 0

3 years ago

Which of the following statements about Treasury bonds is the most accurate? Treasury bonds are completely riskless. Treasury bo

WARRIOR [948]

Answer: 1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. Walmart

3. Corporate bonds

Explanation:

1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.

2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.

3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.

8 0

3 years ago

Sanchez Company has 48,000 shares of 7% preferred stock of $100 par and 92,000 shares of $50 par common stock issued and outstan

galina1969 [7]

Answer:

Check Explanation.

Explanation:

The following parameters are given for dividends of three years;

Year 1 = $497,000, Year 2 = $490,000 Year 3 = $524,000.

The number of shares= 48,000 of 7%, preferred stock = $100 par and 92,000 shares of $50 par common stock issued and outstanding.

Therefore,

Year one:

=> Amount Distributed = $497,000.

=> Preferred dividend = 48,000 × 7% × $100 = 336,000.

=> Common dividend = 497,000 - 336,000 = 161,000.

=> Preferred divided per share = 336,000/ 48,000 = $ 7.

=> Common dividend = Common dividend/ 92,000 shares = 161,000/ 92,000 shares =$ 1.75.

Year Two:

=> Amount Distributed = $490,000.

=> Preferred dividend = 48,000 × 7% × $100 = 336,000.

=> Common dividend = 490,000 - 336,000 = 113,000.

=> Preferred divided per share = 336,000/ 48,000 = $ 7.

=> Common dividend = Common dividend/ 92,000 shares = 113,000/ 92,000 shares =$1.23.

Year Three:

=> Amount Distributed = $524,000.

=> Preferred dividend = 48,000 × 7% × $100 = 336,000.

=> Common dividend = $524,000 - 336,000 = 188,000.

=> Preferred divided per share = 336,000/ 48,000 = $7.

=> Common dividend = Common dividend/ 92,000 shares = 188,000/ 92,000 shares =$2.04

6 0

3 years ago