The taxes that are being paid by a business firm represents: C. a cash outflow.
Taxation can be defined as the involuntary and compulsory fees that are usually levied on individuals or business firms (entities) by the government, so as to generate revenues which are used in funding public institutions and activities.
Basically, these taxes that are being paid by individuals or business firms (entities) is considered as a cash outflow because it represents money that are flowing out of their accounts.
In conclusion, an amount of money that is flowing out of an account such as taxes is referred to as a cash outflow.
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Answer:
D) it presumes there will be economic gains even if output does not become internationally competitive
Explanation:
The argument for import protection in developing countries to bring about industrialization differs from the infant-industry argument in that it presumes there will be economic gains even if the output does not become internationally competitive. International competitiveness is a step of the relative cost of services/goods from a nation. Countries that can provide a similar quality of goods at a cheaper cost are stated to be extra competitive.
Answer:
$81.52
Explanation:
The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:
Current dividend=$3.95
Year 1 dividend=$3.95*(1+5%)=$4.15
Year 2 dividend=$4.15*(1+5%)=$4.36
Year 3 dividend=$4.36*(1+5%)=$4.58
The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%
Year 4 dividend=$4.58*(1+5%)=$4.81
Year 5 dividend=$4.81*(1+5%)=$5.05
Year 6 dividend=$5.05*(1+5%)=$5.30
The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%
Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)
growth rate=5%
rate of return=10%(rate of return thereafter)
terminal value=$5.30*(1+5%)/(10%-5%)
terminal value=$111.30
current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6
current share price=$81.52
Answer:
d. people face trade-offs.
Explanation:
The production possibility frontier shows all the combinations of two goods an economy can produce when all its resocurces are fully employed.
At one extreme of the curve, the highest possible amount of one good is produced while zero quantity of the second good is produced . To produce more quantity of the second good, one has to produce less quantity of the first good. This illustrates trade off.
I hope my answer helps you
Answer:
$291.56
Explanation:
Find the dividend amount per year;
D1 = D0(1+g ) = 3.40(1+0) = 3.40
D2 = 3.40*(1.05) =3.57
D3 = 3.57*(1.05) =3.7485
D4= 3.7485*(1.15) = 4.3108
D5 = 4.3108 *(1.10) = 4.7419
Find the Present value of each year's dividend;
PV (of D1) = 3.40/ (1.14 ) = 2.9825
PV (of D2) = 3.57/ (1.14² ) = 2.7470
PV (of D3) = 3.7485/ (1.14³ ) = 2.5301
PV (of D4) = 4.3108/ (1.14^4 ) = 2.5523
PV (of D5 onwards)
PV (of D5 onwards) = 280.7519
Next, sum up the PVs to find the maximum price of this stock;
= 2.9825 + 2.7470 + 2.5301 + 2.5523 + 280.7519
= 291.564
Therefore, an investor should pay $291.56
