Answer:
The correct answer is letter "A": If tax cuts are not evenly distributed across income groups.
Explanation:
Fiscal policy refers to the combined governmental decisions regarding a country's taxing and spending. The term fiscal policy is associated with British economist John Maynard Keynes (<em>1883-1946</em>) who believed governments should influence macroeconomic productivity levels. Though, it could be a trap if it is <em>not allocated correctly among different income groups</em>. Economies such as Brazil, for instance, have allocated higher taxes for low-income people creating <em>economic disparity</em>.
Answer:
C) common stockholders, but after that of bondholders.
Explanation:
Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders but after that of bondholders.
The preferred shareholder is given preference for the distribution of dividends, which is higher than the common stock. It is paid as per the discretion of the company´s directors. Instead, they have limited right and they do not vote for corporate governance like a common stockholder. In the case of the dissolution of the company, the preferred shareholders will still receive payment due to them in terms of dividends. They have a feature of both bonds and equity stockholders.
Answer:
See attached picture.
Explanation:
See attached picture for explanation.
Answer:
3.4%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
9.7 = 5.2 + 1.34(x - 5.2)
9.7 - 5.2 = 1.34(x - 5.2)
3.35 = x - 5.2
