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Alex787 [66]
2 years ago
9

The deadweight loss from a tax per unit of good will be smallest in a market with a. inelastic supply and elastic demand. b. ine

lastic supply and inelastic demand. c. elastic supply and elastic demand. d. elastic supply and inelastic demand.
Business
1 answer:
deff fn [24]2 years ago
7 0

The deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.

The Deadweight loss refers to loss that occurs when supply and demand are not in equilibrium and thus, result in market inefficiency.

Usually, the value of the deadweight loss varies with the demand elasticity and supply elasticity.

So, when the demand or supply is inelastic, the deadweight loss of the taxation will be smaller because the quantity bought or sold varies less with price.

Therefore, the answer is B. because the deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.

Learn more about this here

<em>brainly.com/question/13719669</em>

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Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo
natulia [17]

Answer:<em>True cost = \frac{cost of assembly}{1-weighted flotation cost }</em>

<em>=  \frac{13,000,000}{1- 0.049}</em>

<em>= $ 13,669,821.2</em>

Explanation:

Given :

Debt-Equity ratio = 0.55

Flotation cost for new equity = 6%

Flotation cost for debt = 3 %

∴ To compute the weighted flotation cost , we'll use the following formula:

Weighted Flotation cost =\left [ \frac{1}{1+Debt-Equity ratio}\times Flotation cost of equity \right ] + \left [ \frac{Debt-Equity ratio}{1+Debt-Equity ratio}\times Flotation cost of debt \right ]

=  \left [ \frac{1}{1+0.55}\times 0.06 \right ] + \left [ \frac{0.55}{1+0.55}\times 0.03 \right ]

= 0.0387 + 0.0106

= 0.04934 or 4.93%

The true cost of building the new assembly line after taking flotation costs into account is evaluated using the following formula :

True cost = \frac{cost of assembly}{1-weighted flotation cost }

=  \frac{13,000,000}{1- 0.049}

= $ 13,669,821.2

3 0
3 years ago
Seth borrows X from Tina and agrees to pay it back over 20 years using the sinking fund method. At the end of each year, Seth wi
guapka [62]

Answer:

The outstanding balance immediately after 12 years is $5,071.34.

Explanation:

Amount available in sinking fund account at the end of 12 years is given by:

( S ) = D*( (1+r)12 - 1 )/r

Where :

D = annual deposit at the end of every year = $ 400

r = interest earned on the depost = 3%

then:

S = 400 * ( ( (1+3%)12 - 1 ) / 3%)

   = $ 5,676.81

it is also mentioned that the sinking fund amount balance at the end of 20 years should be equal to repay the principal amount borrowed

so, sinking Fund at the end of 20 years would be :

T = D * ( (1+r)20 - 1 ) / r

   = 400 * ( ( (1+3%)20 - 1 ) / 3%)

  = $ 10,748.15

So, Seth has borrowed $ 10,748.15 from Tina which has to be paid at the end of 20 years.

At the end of 12 years his sinking fund balance would be equal to $ 5,676.81

As, he keeps paying interest regualarly every year at the end of 12 years the outstanding balance would be

= (Total amount borrowed) - (Sinking Fund at the end of 12 years)

= $ 10,748.15 - $ 5,676.81

= $ 5,071.34

Therefore, The outstanding balance immediately after 12 years is $5,071.34.

3 0
3 years ago
an online store wants a database of customer information but it does not have the meta pixel installed. which campaign objective
madam [21]

The <u>c</u>ampaign objective which meets this business goal is Lead Generation

<h3>What is Lead Generation?</h3>

This refers to the process through which potential customers are identified and cultivated.

Hence, we can see that from the given scenario of the use of a database of customer information to identify their purchase decisions but has no metadata installed, this is lead generation.

Read more about Lead Generation here:

brainly.com/question/14972440

#SPJ12

3 0
2 years ago
A firm with no debt has 200,000 shares outstanding valued at $20 each. Its cost of equity is 12%. The firm is considering adding
Kipish [7]

Answer:

Option (C) is correct.

Explanation:

Given that,

No. of shares = 200,000

Market value per share = $20 each

Tax rate = 34%

Debt amount = $1,000,000

Market value of firm:

= Market value of equity + (Tax rate × Debt)

= (No. of shares × market value per share) + (Tax rate × Debt amount)

= (200,000 × $20) + (0.34 × $1,000,000)

= $4,000,000 + $340,000

= $4,340,000

= $4.340 million

The firm be worth after adding the debt is $4.340 million.

7 0
3 years ago
Although most STEM careers require workers to earn bachelor's degrees, high school graduates can qualify for some STEM careers.
pogonyaev

Answer:

D.

Explanation:

7 0
3 years ago
Read 2 more answers
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