What are the steps for writing a check?

Assume the demand curve is more elastic than the supply curve for the product: chewing tobacco. If the government wants to tax c

Over [174]

Answer:

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

Explanation:

The options to this question wasn't provided. Here are the options:

The consumers will bear more of the tax than the producer because the supply curve is more inelastic than the demand curve.

The producers will bear the entirety of the tax because the supply curve is more inelastic than the demand curve.

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

The consumers will bear the entirety of the tax because producers set the price.

The producers will bear the entirety of the tax because the government imposed the tax directly on them.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

The more elastic demand or supply is the more sensitive quantity demanded or supplied to changes in price.

The burden of tax refers to who pays the tax.

If demand is more elastic that supply it means that demand is more price sensitive to changes in price that supply.

This means that if a tax is imposed which increases the price of the good, quantity demand would change more than quantity supplied.

Therefore, the burden of tax is borne by the party with the less elasticity.

I hope my answer helps you

4 0

3 years ago

A stock sells for $12.36 a share and has a required return of 9 percent. Dividends are paid annually and increase at a constant

jenyasd209 [6]

Answer:

$0.72

Explanation:

The computation of the amount of the last dividend paid is shown below:

Market price of a stock = Last dividend × (1 + growth rate) ÷ Required rate of return - growth rate

$12.36 = Last dividend × ( 1 + 0.03) ÷ 0.09 - 0.03

$12.36 = Last dividend × (1.03) ÷ 0.06

$12.36 × 0.06 = 1.03 × last dividend

$0.7416 = 1.03 × last dividend

So,

last dividend is

= $0.7416 ÷ 1.03

= $0.72

7 0

3 years ago

PLZ!!! SOMEONE HELP ME Drag each label to the correct location on the table. Match the characteristics with the organizations th

astra-53 [7]

Answer:

umm you already said it

Explanation:

...

5 0

3 years ago

Read 2 more answers

Suppose the world price of cotton falls substantially.

Crazy boy [7]

Answer:

(A) Decrease

(B) Increase

(C) Frictional

Explanation:

An decrease in the price of cotton will cause all the cotton producing firms to put Strategies in place that will help them to cut the costs of operations which will include the REDUCTION OF THE MANPOWER OR WORKFORCE.

When the price of raw materials or inputs used in the production processes of a given product reduces, IT WILL ENABLE THE COMPANY TO WANT TO INCREASE ITS PRODUCTION CAPACITY WHICH WILL ALSO INVOLVED AN INCREASE IN MANPOWER OR WORKFORCE.

Frictional Unemployment is a type of Unemployment caused by seasonal changes such as reduced demand, reduced price of products etc or people changing jobs due to certain factors.

4 0

3 years ago

The Saunders Investment Bank has the following financing outstanding. Debt: 120,000 bonds with a coupon rate of 8 percent and a

algol [13]

Answer:

R_Wacc = 11,35% (48%) + 8,57% (4%) + 4,18% (35%) + 3,59% (13%) = 7,70%

Explanation:

Re: 11,35% Cost of Common Equity

Re: 8,57% Cost of Preferred STOCK

Re: 4,18% Cost of Debt BONDS

Rd: 3,59% Cost of Zero BONDS

Equity :

$179,200,000 Market Value of the firm's Common Equity

Preferred Stock:

$14,700,000 Market Value of the firm's Preferred STOCK

Debt bonds :

$132,000,000 Market Value of the firm's Debt BONDS

Zero bonds :

$49,300,000 Market Value of the firm's ZERO BONDS

V: $375,200,000 E+D = Total Market Value of the firm's financing

E/V: 48% Percentage of financing that is Common Equity

PS/V: 4% Percentage of financing that is Preferred Stock

DB/V: 35% Percentage of financing that is Debt Bonds

ZB/V: 13% Percentage of financing that is Zero Bonds

Tc: 40% Corporate tax rate

Total Market Value

Market value of debt Bonds:

120,000 x $1,000 x 110% = $132,000,000

Market value of debt Zero Coupon:

290,000 x $1,000 x 17% = $49,300,000

Market value of preferred stock:

210,000 x $70 = $14,700,000

Market value of common stock:

3,200,000 x $56 = $179,200,000

TOTAL = $375,200,000

Using the CAPM model we can calculate the costo of equity:

R = 0,04 + 1,05(0,07) = 11,35%

The cost of debt is the YTM of the bonds, so:

P0= $1,110 = $40(PVIFAR%,40) + $1,000(PVIFR%,40) =

R = 6,97%

The aftertax cost of debt is:

R_Bonds : (1 - 0,4) x (0,0697) = 4,18%

The aftertax cost of zero coupon bonds is:

Yield To Maturity = (Face Value/Current Bond Price)^(1/Years To Maturity)−1 = 5,98%

(Face Value/Current Bond Price) = '$1,000/$175 (1/Years To Maturity) = 1/30

The aftertax cost of debt is:

R_ZeroB : (1 - 0,4) x (0,0598) = 3,59%

We can use the preferred stock pricing equation, which is the level perpetuity equation, so the required return on the company’s preferred stock is:

Rp= D1/P0 = $6/$70 = 8,57%

Rp = Required Return D1 = Dividend P0 = Price

8 0

3 years ago