Answer:
6.30%
Explanation:
For offering for the investor to prefer them to the corporate bond we need to calculate the after tax return which is shown below
After tax return is
= Before tax return × (1 - tax rate)
= 0.09 × (1 - 0.30)
= 0.063 or 6.30%
As the after tax return is 6.30% the same is to be offered for the investor
Hence, the correct answer is 6.30%
Answer:
8,000 square foot
Explanation:
Total space available 20,000 square foot.
60 percent to be used. space left?
If 60% is will be used, only 40% will be availble for construction.
40% of 20,000= 40/100x 20,000
=0.4 x 20,000
=8,000 square foot
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
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Answer:
Price elasticities of demand and supply
Explanation:
Tax is a compulsory amount levied on goods and services by the government or an agency of the government.
taxes increases the prices of goods and services
Deadweight loss of tax refers to a reduction in quantity demanded and supplied as a result of tax.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
If demand or supply is elastic, the deadweight loss of tax is higher. If demand or supply is inelastic, the deadweight loss of tax would be lower.
