All categories

3 years ago

When is VAT added to a product’s price?

Business

1 answer:

Sophie [7]3 years ago

3 0

VAT added to the products price at the stage of sale.

Answer: Option B

<u>Explanation:</u>

VAT stands for value added tax. VAT system is like a GST. The VAT has to be paid by the consumer or a business concern must pay the cost of goods and services and has to be subtracted material cost of previous year if any.

At the exact and each time value is added when a sale is made. Each and every seller in the production chain as to be charges VAT tax to the buyer, which it's remitted to the government.

You might be interested in

ABC issued 12,000 shares and subsequently reacquired 2,000 shares as treasury stock. The following year, ABC Corporation declare

Ghella [55]

Answer:

Dividend expense will be $20000

Explanation:

We have given share used = 12000 shares

And Treasury stock = 2000 shares

It is given a regular dividend of $2 per share

We have to find the dividend stock

Outstanding share = Share used - treasury stock = 12000 - 2000 = 10000 shares

So dividend expense = $2×10000 = $20000

So dividend expense will be $20000

7 0

3 years ago

"the table above shows the payoff matrix offered to two suspected criminals, bonnie and clyde. the payoffs are the years they wi

Semmy [17]

They both will confess to the other's crimes.

They both could get lighter sentences for co-operating with each other, but since they are not allowed to communicate with each other, and hence will have only their best interests in mind, to betray the other for his own good. However, when they both do this, it becomes a double betrayal, and hence their sentences become even longer.

6 0

4 years ago

Is GDP a good measure of the prosperity of the average person?

lubasha [3.4K]

<h2>Yes GDP is a good measure of the prosperity of the average person.</h2>

Explanation:

GDP - Gross domestic Product

The GDP will take the entire output of goods and services produced in a year by everyone within the country's borders.

Real GDP is the best than nominal GDP
GDP acts as a component of a human welfare

One drawback of GDP is it does not take the amount of pollution, safety and health. It does not take "well-being" too. Suppose if everyone starts working on weekends without "leisure", "GDP" does not take into account. So now it fails to check prosperity along with well being of the average person.

6 0

3 years ago

4. Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of

Morgarella [4.7K]

Number 4 is a number 5 is d

4 0

3 years ago

Read 2 more answers

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will inc

NemiM [27]

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year PV of dividend

1 2+6 ×× 1.1^-1 = 7.27

2 10 × 1.1^-2 = 8.26

3 12× 1.1^-3 = 9.02

4 14 × 1.1^-4 =9.56

5 16 × 1.1^-5 = 9.93

Total Present Value of dividend = 7.27 + 8.26 +9.02 +9.56 +9.93 = 44.05

Price of stock = $44.05

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year PV of dividend

1 2+6 ×× 1.1^-1 = 7.27

2 10 × 1.1^-2 = 8.26

3 12× 1.1^-3 = 9.02

4 14 × 1.1^-4 =9.56

5 16 × 1.1^-5 = 9.93

Total Present Value of dividend = 7.27 + 8.26 +9.02 +9.56 +9.93 = 44.05

Price of stock = $44.05

7 0

3 years ago