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2 years ago

The laissez faire model is inspired by the work of which economic philosopher?

1 answer:

3 0

Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.

I hope this helped! :)

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Assume that John's marginal tax rate is 40%. If a city of Austin bond pays 6% interest, what interest rate would a corporate bon

Lisa [10]

Answer:

B. 10%

Explanation:

Given that

Tax rate = 40%

Net tax rate = 6%

Recall that

Gross interest = Net of tax rate / ( 1 - tax rate)

Therefore,

= 0.06 ÷ ( 1 - 0.40)

= 0.06 ÷ 0.60

= 0.1

= 10%

5 0

2 years ago

1 point

Reil [10]

True I’m pretty sure that’s right

3 0

2 years ago

Peter wishes to create a retirement fund from which he can draw when he retires and the same amount at each anniversary of his r

uranmaximum [27]

Answer:

$65,742.60

Explanation:

Note: The full question is <em>"Peter wishes to create a retirement fund from which he can draw $20,000 when he retires and the same amount at each anniversary of his retirement for 10 years. He plans to retire 20 years from now. What investment need he make today if he can get a return of 5% per year, com- pounded annually?"</em>

At first, we need to find the PV of withdrawals and there are 11 withdrawals starting 20 years from now.

PV = PMT/r * 1 - 1/(1+r)^n. This formula gives the PV one period before the first withdrawal. That is 19 years from now because the first withdrawal is 20 years from now.

PMT = 20,000, n = 11,

r = 0.05

PV19 = 20,000/0.05 * [1 - 1/(1+0.05)^11]

PV19 = 400,000 * 0.4153207109

PV19 = 166,128.28436

Now, we need to discount this back to toda

PV0 = PV19/(1 + r)^n; n = 19, r = 0.05

PV0 = 166,128.28436/(1 + 0.05)^1

PV0 = $65,742.6033421702

PV0 = $65,742.60

So, Peter needs to make $65,742.60 today.

3 0

2 years ago

Mocha Company earned net income of $ 105,000 during the year ended December 31, 2018. On December 15, Mocha declared the annua

lapo4ka [179]

Answer:

The answer is given below;

Explanation:

Retained Earnings (125,000*2%) Dr.$2,500

Dividend payable Cr.$2,500

Retained Earnings (62,000*.25) Dr.$15,500

Dividend Payable Cr.$15,500

5 0

2 years ago

Stone Co. began operations in year 3 and reported $225,000 in income before income taxes for the year. Stone's year 3 tax deprec

Lubov Fominskaja [6]

Answer:

Given:

Income before income taxes = $225,000

Book depreciation = $25,000

Nondeductible book expenses = $10,000

Tax rate = 40%

Enacted rate = 35%

Deferred income tax liability is computed as:

Deferred income tax liability = Book depreciation × Enacted rate

= $25,000 × 35%

= $8,750

3 0

2 years ago