If the price elasticity of demand is inelastic, then the incidence of tax will be greater on consumers, as producers can shift most of the tax on them by raising prices. Whereas if it was elastic, then it would be producers.
Answer:
Economic Value Added (EVA) = $2,620
Explanation:
WACC = 11%
Capital = $20,500
Sales = $11,500
Operating cost = $5,000
Tax rate = 25%
EBIT = Sales - Operating cost
EBIT = $11,500 - $5,000
EBIT = $6,500
Economic Value Added (EVA) = EBIT (1 - T) - (WACC * Capital)
Economic Value Added (EVA) = 6,500*( 1 - 0.25) - (0.11 * $20,500)
Economic Value Added (EVA) = $4,875 - $2,255
Economic Value Added (EVA) = $2,620
Corporation or sole proprietorship would
be his best business options, depending on what he is willing to risk.
<span>A </span>corporation<span> is
a legal entity that is separate and distinct from its owners. </span>Corporations<span> enjoy most of the rights and
responsibilities that an individual possesses; that is, a </span>corporation<span> has the right to enter into
contracts, loan and borrow money, sue and be sued, hire employees, own assets
and pay taxes.</span>
<span>The </span>sole proprietorship<span> is the simplest business form under which one
can operate a business. The </span>sole proprietorship<span> is not a legal entity. It simply refers to a
person who owns the business and is personally responsible for its debts.</span>
The correct answer between all
the choices given is the first choice or letter A. I am hoping that this answer
has satisfied your query and it will be able to help you in your endeavor, and
if you would like, feel free to ask another question.
The formula is
A=P (1+r/k)^kt
A future value?
P present value 200
R interest rate 0.08
K compounded semiannual 2
T time 3years
A=200×(1+0.08÷2)^(2×3)
A=253....answer
Answer:
$6.25 per ton of coal
Explanation:
the depletion base = purchase cost + restoration costs
- purchase cost = $20 million
- restoration costs = $6 million
depletion base = $26,000,000
depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal
The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.