Answer: Debt being less risky than equity and interest payments being tax deductible.
Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.
Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .
Answer:
1. Increasing
2. A. The elasticity of private saving with respect to the after-tax real interest rate
B. The response of private saving to changes in the government budget deficit
C. The elasticity of investment with respect to the interest rate
Explanation:
1. It is difficult to implement both of these policies at the same time because reducing taxes on private spending has the effect of <u><em>Increasing</em></u> the government budget deficit.
A Government budget deficit is acquired when the government spends more than it earns. The Government earns money from taxes and if it spends more than it receives in taxes, that will lead to a deficit. If taxes on Private spending are reduced, this will lead to less tax revenue for the government thereby increasing the Deficit.
2. All of the listed options are useful in determining which policy would be a more effective way to raise investment.
The elasticity of private saving with respect to the after-tax real interest rate refers to how much private saving changes in reaction to a change in the tax rates. This can enable one decide how much investment will be expected if the Government reduces or increases taxes.
The response of private saving to changes in the government budget deficit is also a useful factor to look at because private savings reduce when government deficits reduce.
Also how much does investment change by due to interest rates. This will be important to note in terms of Private Investment to see if it will be beneficial to use it over reducing the government budget deficit given a certain interest rate.
Let x represent the number of packages Charlie needs to sell to make a monthly income of $5, 000
Since he sells cookies only in packages of 10 then he has to sell 10x to make that income. But Charlie has expenses that has to be deducted from his total sales to make that figure.
So the total expenses is $1, 500 in overhead and an extra $3.50 per material per package. So the total expenses = 1500 + 3.50x
If he has to make $5, 000 at the end of the month we have
10x - (1500 + 3.50x) = 5000
10x - 1500 - 3.50x = 5000
6.50x = 5000 + 1500 = 6500
Solving we find:
x = 1, 000 packages
Answer: the answer is C deduct $3500 each year.
Explanation: Whether the land is vacant and unproductive or it is used to generate income. The property tax for the land will be paid yearly
Answer:
23,000 idk really im guessing
Explanation:
