When the elasticity of demand for a product is smaller than the elasticity of supply, consumers pay majority of the tax on the product.
The way the tax burden is distributed between purchasers and sellers is known as the tax incidence.
The relative price elasticity of supply and demand determines the tax incidence.
Usually, both the producers and the consumers of the taxed goods bear the incidence, or burden, of the tax.
But all we have to do is look at the elasticity of demand and supply to determine which group will be carrying the bulk of the load.
The majority of the tax burden falls on consumers when supply is more elastic than demand.
The majority of the tax burden falls on the producers when demand is more elastic than supply.
The less elastic the demand and supply are, the higher the tax revenue.
Hence, When the elasticity of demand for a product is smaller than the elasticity of supply, consumers pay majority of the tax on the product.
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Answer:
Flexible resources
Explanation:
Flexible resources are defined as those that can be utilised under different categories of resource groups.
They are able to serve multiple functions.
For example money can be used for different activities like production of goods, training of staff, purchase of raw materials, and so on.
Time can be allocated to different endeavours.
Same applies to energy. It can be focused on pursuing various objectives
Answer:
This popular saying applied to an organizational environment, can refer to upset customers in the sense that if your customers make any complaints or complaints about your products and services, you, as a professional representing the company, must be well prepared and trained to deal with this adverse situation in a way that is not a "person who fights fire with fire and ends up with ashes", that is, you must be well prepared to respond to the customer's problem in a friendly, fast way and that brings solutions that do it. return, and not in a way where the customer feels that their complaint has not been resolved well and will not do business with the company again.
Answer:
a. If dividends are annual and expected to be constant, what is the intrinsic value (fair price) of ABC stock?
P₀ = $0.26 / 12% = $2.16667 = $2.17
b. What is ABC's dividend yield?
$0.26 / $2.17 = 12%
c. From now on, assume that the dividend of 0.26 was a quarterly dividend. What is the quarterly discount rate?
12% / 4 = 3%
d. What is the intrinsic value if dividends are constant and quarterly?
P₀ = $0.26 / 3% = $8.66667 = $8.67
e. We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of 0.26. What is the intrinsic value of ABC stock?
P₀ = ($0.26 x 1.003) / (3% - 0.3%) = $9.6585 = $9.66
f. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.3% thereafter. What is the intrinsic value?
Div₀ = $0.26
Div₁ = $0.273
Div₂ = $0.287
Div₃ = $0.301
Div₄ = $0.316
Div₅ = $0.317
terminal value in 4 quarters = $0.317 / (3% - 0.3%) = $11.74
P₀ = $0.273/1.03 + $0.287/1.03² + $0.301/1.03³ + $0.316/1.03⁴ + $11.74/1.03⁴ = $0.265 + $0.271 + $0.275 + $0.281 + $10.43 = $11.522
