Answer:
The answer is: A) $0
Explanation:
I am assuming Stuart's stock is part of his retirement account. If this is true, then the stock dividends and stock splits are not taxed as they are earned (but they will be taxed later when Stuart starts receiving his distributions).
If Stuart's stock was not part of his retirement account, then he would have to pay taxes (usually a 15% tax rate applies).
This phenomenon best illustrates how a progressive income-tax system serves as an automatic stabilizer for the economy.
<h3>What is an automatic stabilizer?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . Examples include progressive tax and transfer payments. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
In an expansion, progressive tax increases the tax paid and this reduces disposable income. In a recession, tax paid is reduced and this increases disposable income
Here are the options:
increases crowding out in the economy
decreases real interest rates in the economy
offsets the timing problem for fiscal policy
Serves as an automatic stabiler for the economy
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Answer:
Weighted average unit cost = $8.78
Explanation:
<em>The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received. or every new batch received the average cost per unit is re-computed by dividing the total value of stock by the outstanding number of units.</em>
The explanation is completed using calculation below:
Total value of stock = (250× $5) + (500×$9) + (375 × 11) = $9,875
Total units of stock = 250 + 500 + 375 = 1,125 units
Weighted average unit cost = Total value of stock / total units of stock
= $9875
/ 1125 units = $8.78
Weighted average unit cost = $8.78
Answer:
$172.25
Explanation:
initial outlay for the project = -$350
cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80
using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:
=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25
we can also do it manually:
NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25
