Answer:
$1,260,000
Explanation:
Given that,
Annual depreciation expense = $3.6 million
Marginal corporate tax rate = 35%
Average corporate tax rate = 30%
The reason to use marginal tax shield is that the firm would save additional amount it would have paid in taxes.
Value of the depreciation tax shield:
= Marginal corporate tax rate × Annual depreciation expense
= 35% × $3,600,000
= $1,260,000
Therefore, the value of the depreciation tax shield on the company's new project is $1,260,000.
Answer:
. quantity supplied does not equal quantity demanded.
Explanation:
Disequilibrium is a situation where the market price is below or above the intersection point of the demand and supply curve. As a result, the market experiences a shortage or surplus of a product. Therefore, at disequilibrium, the quantity supplied does not match the quantity demanded.
Disequilibrium is the contrast of equilibrium. At equilibrium, supply matches demand, meaning there is no surplus or shortages in the market. If the quantity supplied exceeds quantity demanded, then the market experiences a surplus. Shortage arises if the quantity demanded is more than the quantity supplied.
Solution:
1.
The average snowfall in cincinnati over this period was 28 inches.
In the city cincinnati, snowfall (inches) in january and february is 18 and 38 respectively :
Average snowfall = {18+38}/{2} = 28 inches
2.
If the march data on snowfall is above the average (i.e 28 inches), The monthly average will rise.
If the march data on snowfall is above the average snowfall in January and February (i.e 28 inches), the monthly average will rise because, any snowfall data in march which is greater than 28 inches will lead to rise in monthly average.
For e.g , suppose, If we consider snowfall (inches) in march is 30 inches, than monthly average is :
Monthly average snowfall= {18+38+31} / {3}= 29 inches
which is greater than 28 inches.
Therefore, If the march data on snowfall is above the average (i.e 28 inches), The monthly average will rise.
it should be noted that financial instruments are created to transfer risks that are difficult to predict.
<h3>What are financial instruments?</h3>
financial instruments can be regarded as contract that exist between individuals/parties which is accessing monetary value.
With these financial instrument , transfer risks in the financial domains can be predicted.
Examples of financial instrument are:
- cheques
- shares
- stocks, bonds
Learn more about financial instrument at;
brainly.com/question/1096688
Answer: -$200 or $200 loss
Explanation:
Profits are made on call options when the price of the underlying asset increases in value.
These contracts are sold per 100.
The premium paid is subtracted from the profit to find the net profit.
Net Profit = ( 1,301 - 1,300 - 3) * 100
= -$200
