Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The correct answer is option B.
Explanation:
A corrective tax is a policy used by the government to decrease negative externality. It is different from negative externality in the sense that it brings allocation of resources closer to the socially optimal level.
The imposition of tax on a product increases the cost of production of a commodity. This increase in the cost of production will cause the production of the product to decrease. As a result, a fewer quantity of the product causing externality will be produced.
So negative externality will be reduced and the economy will move closer towards economic efficiency.
Answer:
$34.62
Explanation:
Lee's manufacturing value of operation is $900 million after recapitalization
The firm has no amount of debt Before this
They also had no short term investments before the recap
After the recap wd= 1/3
Lee's had 26 million before the recap
The first step is to calculate the value of equity after recap
= (1-1/3) × 900 million
= 0.6667 × 900 million
= 600 million
Therefore the stock price after the recap can be calculated as follows
= 600 million + (300 million - 0)/26 million
= 600 million + 300 million /26 million
= 900 million/26 million
= $34.62
Hence the stock price after the recap is $34.62
<u>Solution and explanation</u>
Present value of the $1,500 monthly payments is
PMT $1,500
Annual Rate 6.05%
Number of period (NPER) 420
Present value Annuity (PVA) (calculated in excel using PV function) $261,528.41
$261,528.41
Cost of Home $310,000
Amount of principal still owe = $310,000 - $261,528.41 $48,471.59
Balloon payment in 35 years, which is the FV of the remaining principal =
Present Value $48,471.59
Annual Rate 6.05%
Number of period (NPER) 420
Future Value (calculated in excel using FV function) $400,677.90
Balloon payment = $400,677.90
Answer:
Convergent Thinker
Explanation:
A convergent thinker is the one who gives correct answers to the problems and does not considers other options whereas divergent thinker considers all the possible options to choose the best options. It doesn't matter who you are, all that matters is what is your decision. You can not be right all the times. Divergent thinker is bit more risk averse approach and creative people are always divergent thinkers.