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3 years ago

What is the proper balance between dealing with negative externalities through government regulation or through torts?

Business

1 answer:

frutty [35]3 years ago

3 0

Answer:

Government regulation is the best way to deal with negative externalities

Explanation:

An externality is the effect of the activities ( mostly economic ) of an individual on third parties whom are not direct participants in such activities ( mostly economic ) and this externalities can be either positive or negative .

A proper balance by which Government can deal with negative externalities is by increasing taxes on the production of goods and services that leave a trail of negative externalities on third parties. that way the cost of production of such goods and service will discourage its production

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J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturi

g100num [7]

Answer:

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Explanation:

PV = 106

PMT = 6/2 =-3

N = 16*2 = 32 semi annual

FV = -100

Semi annual yield = 2.72%

Annual cost of debt = 2.72%*2 = 5.44%

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Using Rate function in Excel or Financial calculator

6 0

3 years ago

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will recei

Svetach [21]

Answer:

$141.80

Explanation:

Calculation for the difference in the present value of these two sets of payments

First step is to calculate for the PVA Due

PVA Due = $450 × [(1 - {1 / [1 + (.095 / 12)]^(4 × 12)}) / (.095 / 12)] × [1 + (.095 / 12)]

PVA Due = $18,053.58

Second step is to find the PVA

PVA = $450 × [(1 - {1 / [1 + (.095 / 12)]^(4 × 12)}) / (.095 / 12)]

PVA= $17,911.78

Since we have know both the PVA Due and the PVA the last step will be to know the difference between the both sets of payments using this formula

Difference= PVA Due - PVA

Difference = $18,053.58 - 17,911.78

Difference= $141.80

Therefore the difference in the present value of these two sets of payments will be $141.80

8 0

4 years ago

Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X

belka [17]

Answer:

The cost per unit of the Fin-X model is $28 and the cost per unit of the Sci-X model is $33.

Explanation:

Process costing refers to a cost accounting technique that traces and accumulates direct costs for each product type or model, and then assigns indirect or conversion costs incurred in the manufacturing process to each product based on the method adopted by the firm.

The cost per unit of the Fin-X and Sci-X models for June can be computed by following the following steps:

Step 1: Calculation of total parts cost of Fin-X and Sci-X

Fin-X total parts cost = Units of Fin-X × Fin-X parts cost per unit

= 10,000 × $25

Fin-X total parts cost = $250,000

Sci-X total parts cost = Units of Sci-X × Sci-X parts cost per unit

= 40,000 × $30

Sci-X total parts cost = $1,200,000

Step 2: Assignment of total conversion cost of Fin-X and Scin-X

Fin-X portion of conversion cost = (Units of Fin-X ÷ Total units) × Total conversion cost

= (10,000 ÷ 50,000) × $150,000

Fin-X portion of conversion cost = $30,000

Sci-X portion of conversion cost = (Units of Sci-X ÷ Total units) × Total conversion cost

= (40,000 ÷ 50,000) × $150,000

Sci-X portion of conversion cost = $120,000

Step 3: Calculation of total cost of Fin-X and Scin-X

Fin-X total cost = Fin-X total parts cost + Fin-X portion of conversion cost

= $250,000 + $30,000

Fin-X total cost = $280,000

Sci-X total cost = Sci-X total parts cost + Sci-X portion of conversion cost

= $1,200,000 + $120,000

Sci-X total cost = $1,320,000

Step 4: Calculation of cost per unit for Fin-X and Scin-X

Fin-X cost per unit = Fin-X total cost ÷ Units of Fin-X

= $280,000 ÷ 10,000

Fin-X cost per unit = $28 per unit

Sci-X cost per unit = Sci-X total cost ÷ Units of Sci-X

= $1,320,000 ÷ 40,000

Sci-X cost per unit = $33 per unit

Conclusion

The cost per unit of the Fin-X model is $28 and the cost per unit of the Sci-X model is $33.

5 0

4 years ago

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except a.be

lakkis [162]

Answer:

c.be prepared in accordance with generally accepted accounting principles.

Explanation:

Managerial accounting involves the use of accounting information by managers to make business decisions, this aids in management and control functions in a business.

Managerial accounting does not follow normal generally naccepted accounting practice but is ather tailored to the needs of the user. It is focused on how managers can plan for the future, develop plans for the company, and check if their earlier decisions were accurate.

Financial accounting on the other hand focuses on following accounting standards in reporting financial activity of a business.

Examples of areas of application of managerial accounting include job order costing, process costing, understanding cost behaviour, operational budgeting, and so on.

7 0

3 years ago

In the current year, a taxpayer reports the following items: Salary $50,000 Income from partnership A, in which the taxpayer mat

ollegr [7]

Answer:

Usually, passive loss cannot be taken without passive gain.

but when that passive activity interest has been sold in that year, the loss in that activity can be taken

Explanation:

5 0

4 years ago

Read 2 more answers