Answer:
A) lower income tax rates could increase tax revenues.
Explanation:
The laffer curve is a theoretical model which argues that there a tax rate that theoretically produces the most revenue for the government. Said tax rate is between 0% and 100%.
President Reagan used this model to argue that a lower tax rate would actually increase government revenue. The logic behind this claim was that lower tax rates increases both public and private saving, which in turn increases investment, resulting in more economic growth, and more taxable income.
The validity of these claims is dispute and is subject to debate among economists.
Answer:
Customer may not want the product which the company is making well.
Explanation:
It is not necessary that market needs those products which the company is producing perfectly. It cannot enter into product differentiation and cannot meet customer demands and needs of specific or altered products. The company can achieve specialization and can be a niche player in the market but also on the other hand company’s business is limited to only few products at which it is perfect. It cannot allow customization to its products.
Answer:
D: increase investment projects by firms
Explanation:
When interest rates are lowered, it is a green signal for small and medium size enterprises to borrow money for their investment projects.
Answer:
option 14.92%
Explanation:
Data provided in the question;
Expected annual dividend to be paid = $0.65
Expected growth rate = 9.50%
Walter’s stock currently trades = $12.00 per share
Now,
Expected rate of return = 
+ Growth rate
or
Expected rate of return = 
+ 9.50%
or
Expected rate of return = ( 0.054167 × 100% ) + 9.50%
or
Expected rate of return = 5.4167% + 9.50%
or
Expected rate of return = 14.9167 ≈ 14.92%
Hence, the correct answer is option 14.92%
