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Nadya [2.5K]
3 years ago
10

Explain the effect of a tariff on consumer surplus and producer surplus.

Business
1 answer:
rosijanka [135]3 years ago
7 0
The increase in the domestic price of both imported goods and the domestic substitutes reduces the amount of consumer surplus in the market. Tariff effects on the importing country's producers. ... The increase in the price of their product on the domestic market increases producer surplus in the industry.
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The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.75% annually as we
elena-14-01-66 [18.8K]

Answer:

The responses to the given choices can be defined as follows:

Explanation:

Assume is the investment. Each original Class A investment is of the net-front unburden. The portfolio will be worth four years from now:  

\$1,000 \times 5\% = \$50 =\$1,000 - \$50 = \$950\\\\         \$950 (1 + 0.13)^4 = \$950 (1.13)^4 = \$950 (1.630474) = \$1,548.95\\\\  

You will place the total of \$1,000 on class B shares, but only 12b-1will be paid (13-0.75 = 12.25) at a rate of 12.25\% and you'll pay a 1\%back-end load charge if you sell for a four-year period.

After 4 years, your portfolio worth would be:      

\$1,000 (1 + 0.1225)^4 = \$1,437.66   \\\\      \$1,000 (1.1225)^4 = \$1000 (1.587616) = \$ 1,587.62  

Their portfolio worth would be: after charging the backend load fee:      

\$1,587.616 \times 0.99 = \$1,571.74   \\\\                     Amounts     \\\\     Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     1,548.95\\\\          Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     1,571.74 \\\\

When the horizon is four years, class B shares are also the best option.

Class A shares would value from a 12-year time frame:

\$950 (1.13)^{12} = \$950 (4.334523) = \$4,117.80  \\\\

In this case, no back-end load is required for Class B securities as the horizon is larger than 5 years.

Its value of the class B shares, therefore, is as follows:

\$1,000 (1.1225) 12 = \$1,000 (4.001623) = \$4,001.62 \\\\Amounts    \\\\\      Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,117.80\\\\          Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \   4,001.62\\\\

Class B shares aren't any longer a valid option in this, prolonged duration. Its impact on class B fees of 0.75\%\ \ 12b-1cumulates over a period and eventually outweighs the 5\% the burden of class A shareholders.

4 0
3 years ago
A form of debt or equity that possesses characteristics of both debt and equity financing is called:________
SVEN [57.7K]

A form of debt or equity that possesses characteristics of both debt and equity financing is called <u>hybrid security.</u>

Debt financing means borrowing money from an external source and promising to repay it with interest by a specified future date. Equity financing means that someone donates money or assets to a company in exchange for a percentage of ownership. Each has its pros and cons, depending on your needs.

Debt financing involves borrowing money, while equity financing involves selling some of the company's shares. The main advantage of equity financing is that there is no obligation to repay the acquired funds.

The main difference between debt and equity financing is that debt financing occurs when a company raises capital by selling debt instruments to investors. In equity financing, on the other hand, a company raises capital by going public.

Learn more about hybrid security here brainly.com/question/17178041

#SPJ4

5 0
2 years ago
What is the primary purpose of fixtures
swat32

A fixture is a work-holding or support device used in the manufacturing industry. Fixtures are used to securely locate (position in a specific location or orientation) and support the work, ensuring that all parts produced using the fixture will maintain conformity and interchangeability.

5 0
3 years ago
Read 2 more answers
1.
Romashka-Z-Leto [24]
Your answer is c according to my teacher

8 0
3 years ago
Read 2 more answers
Proctor Inc. has a weekly payroll of $8,000 for a 5-day workweek, Monday through Friday. If December 31, the last day of the acc
s2008m [1.1K]

Answer:

The correct option is A

Explanation:

The weekly payroll amount to $8,000, which starts from Monday to Friday.

So, per day payroll would be:

Per day payroll = Weekly payroll ÷ Number of Days

= $8,000  ÷ 5

= $1,600

And the December 31, is Wednesday. So, the wages expense will increase for 3 days (that is Monday, Tuesday and Wednesday).

It would amounts to:

= Per day payroll × Number of days

= $1,600 × 3

= $4,800

5 0
3 years ago
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