A progressive tax takes a larger percentage of income from high income groups than from low income groups and is based on the concept of ability to pay.
Available Options are:
1 Cost approach
2 Market data approach
3 Income approach
4 Gross rent multiplier
Answer:
Market data approach
Explanation:
The Market data is more relaible source to finding the home's market value. As in the given scenario, it is evident that the property is not an investment property, hence it is more appropriate to find the asset's value using the market data rather using the rental value to compute the value of the asset.
Answer:
unitary product cost= $102
Explanation:
Giving the following information:
Manufacturing costs Direct materials per unit $60
Direct labor per unit $22
Variable overhead per unit $8
Fixed overhead for the year $528,000
Units produced= 44,000
The absorption costing method includes all costs related to production, both fixed and variable<u>. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
Fi<u>rst, we need to calculate the unitary fixed overhead:</u>
Unitary fixed overhead= 528,000/44,000= $12
<u>Now, the unitary product cost:</u>
unitary product cost= 60 + 22 + 8 + 12
unitary product cost= $102
Answer:
since the price elasticity of demand for students is -4, the the price charged to them should be:
price = [-4 / (-4 + 1)] x $6 = (-4 / -3) x $6 = $8
since the price elasticity of demand for faculty is -2, the the price charged to them should be:
price = [-2 / (-2 + 1)] x $6 = (-2 / -1) x $6 = $12
Answer:
(a) $900,000 semi annually
(b) $706,200
Explanation:
a).Total Period to issue 20 year semi-annual bonds=20×2=40
The Cost Of Debt to Company is Increase by = Value Of Bonds × Interest Rate × Semi Annual Year
= $120,000,000 × 1.5% × 1/2
= $900,000 semi annually
b). Consider face value of treasury bond is = $100
Future contract that are currently trading at 129.2, its means yield to maturity is less than coupon rate, according to this we can say that Required rate of return is less than coupon rate.
According to this if interest rate increase by 1.5%, bond price will be increase by 1.5%
Bond Traded at = $129.2 × 1.5% + $129.2
= 1.938 + 129.2
= $131.138
Jordon Earn From Future = Future Contract × (Bond Traded - Currently Trading)
= $100,000 × ( $131.138 - $129.2)
= $193,800
If hedge, net outcome will be = $900,000 - $193,800
= $706,200
