Answer:
Slower economic growth
Explanation:
Increasing tax rates can generally and obviously discourage
work because corporations will pay more,
savings, because people earn lesser disposable income,
investment, because firms have lesser profit by paying bigger taxes,
Although specific tax adjustments for certain income categories can assist with the reallocation of economic resources.
But in the long-run economic growth will be slowed down by tax cuts because it will increase deficits by lesser funds being generated for the government over time
Answer:
Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.
Explanation:
Low Cost providing strategy is the strategy in which the services are provided at a lower cost and but the quality of service is acceptable, and is in fact good.
Where the price along with quality is decreased the low cost strategy is not followed.
As in the case of Airline 2 the cost is decreased for passengers and at the same time the service is also decreased.
As there is a long gap of time in between the flights.
Answer:
d. The stock price is expected to be $54 a share one year from now.
Explanation:
Using dividend discount model(DDM), find next year's dividend;
P0 = D1/ (r-g)
50 = D1/(0.14-0.08)
50 = D1/ 0.06
Multiply both sides by 0.06 to solve for D1;
50 *0.06 = D1
3 = D1
Next, year's dividend is $3
Dividend yield = D1/P0;
= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.
Next year's price; P1 = P0(1+g)
P1 = 50(1.08) = $54 hence choice D is correct
Answer:
$1,000
Explanation:
As we know that
Cost of material used = Beginning balance of inventory + purchase made during the month - ending balance of inventory
$900 = $200 + purchase made during the month - $300
$900 = -$100 + purchase made during the month
So, the purchase made during the month would be
= $900 + $100
= $1,000
We simply added the purchase to the beginning inventory and deduct the ending inventory
Answer:
d. 8.2%
Explanation:
The computation of the WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
where,
Weighted of debt = Debt ÷ total firm
= (0.60 ÷ 1.60)
= 0.375
And, the weighted of common stock = (Common stock ÷ total firm)
= 1 ÷ 1.60
= 0.625
The total firm is
= 0.60 + 1
= 1.60
Now put these values to the above formula
So, the value would equal to
= (0.375 × 8%) × ( 1 - 35%) + (0.625 × 10%)
= 1.95% + 6.25%
= 8.20%
