Answer:
Tammi's liability is d. limited to her investment in the stock.
Explanation:
Since Tammi has purchased a stock in a corporation, one of the fundamental property of a corporate is that the stock-holders of the corporation have a limited liability meaning shareholders are only legally responsible for the debts of a company only to the extent of their investment in the company.
So Tammi's liability is limited to her investment in the stock of Vivaldi Corporation.
Solution :
Given :
The bonds offer a
of 4.5% per year
Tax rate = 10% = 0.10
Inflation rate = 2
=
+ 
= 2 + 4.5
= 6.5
=

= 

= 5.85
After tax real interest rate =
- 
= 5.85 - 2.0
= 3.85
= 7.0

=
+ 
= 7 + 4.5
= 11.5
=



= 10.35
= 11.5 x (1 - 0.10)
= 11.5 x 0.90
= 10.35
=
- 
= 10.35 - 7.0
= 3.35
Putting all the value in table :
Real interest Nominal interest After tax nominal After tax
rate rate interest rate interest rate
2.0 4.5 6.5 5.85 3.85
7.0 4.5 11.5 10.35 3.35
Comparing with the
, a
will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.
Answer:
$21.44
Explanation:
Calculation for the cost per equivalent unit for materials for the month in the first processing department
First step
Units completed and transferred out $7,500
Ending inventory($800+$8,400-$7,500)*70% Ending inventory =1,700*70%
Ending inventory =$1,190
Equivalent units for Materials $8,690
($7,500+$1,190)
Total materials costs $186,300
Second step
Cost per equivalent unit for materials=Total materials costs÷ Equivalent units for Materials
Cost per Equivalent unit for Materials $186,300÷$8,690
Cost per Equivalent unit for Materials=$21.44
Therefore the cost per equivalent unit for materials for the month in the first processing department is closest to $21.44
Answer:
it is challenging to track usage of the coupons
Explanation:
Coupons are defined as an instrument that is used to obtain a discount or rebate when making a purchase.
Stores usually give out coupons to customers as an incentive to by products.
However there will be challenge of tracking the coupons as well as the discount on each coupon.
Coupons are given at different discount rates at different times, so it is cumbersome to track a particular coupon out of the many issued when customer wants to redeem it
Answer:
a.the price level is higher than expected making production more profitable.
Explanation:
The sticky wages shows that the output increases if the price level is higher because an increase in price level increases the profitability and the increased profitability increases output.