Answer:
The correct answer is: price elasticity of supply and demand.
Explanation:
The government introduces a $4 per unit tax on the supply of automobile tires. The tax is imposed on the suppliers. The effect of the imposition of tax will remain the same whether the incidence falls on the buyer or seller. The imposition of tax will lead to an increase in the price of the commodity.
The burden shared by the buyers and sellers depends on the elasticity of demand and supply. If demand is more elastic than the supply, the supplier will bear the greater burden and vice versa.
Answer:
how much must Gary receive from his father's trust?
682,5
Explanation:
$850 Gary's social security + ($850 X 55%) Barbara's social security + x father trust= $2,000
850 + ($850 x 0.55) + x = $2000
850 + 467.50 + x = $2000
1317.50 + x = 2000
x=682,50
Answer: a. $5.50
b. $6.1
c. $3,500,000
Explanation:
a. From the question, we are informed that Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding and that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares.
We are informed that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. This is a transaction and therefore, the value if the share won't be changed. So, the value for the share will still be $5.50.
b. If the only imperfection is corporate tax rate of 30%, the share price after this announcement will be:
= [30% × (20million/10million)] + $5.50
= [0.3 × 2] + $5.50
= $0.6 + $5.50
= $6.1
Therefore, the share price be after this announcement will be $6.1.
c. If the share price rises to $5.75 after this announcement, the PV of financial distress costs Hawar will incur as the result of this new debt will be:
= ($6.1 - $5.75) × 10,000,000
= $0.35 × 10,000,000
= $3,500,000
Answer:
Instructions are listed below
Explanation:
Giving the following information:
CarmelRugs plans to sell carpets for $1,000 each. The company will purchase the carpets from a local distributor for $400 each, with the privilege of returning any unsold units for a full refund.
Jean’sClub has offered Carmel Rugs two payment alternatives for the use of space.
Option 1:
Fixed cost= $17,400 for the sale period
Option 2: 20% of the total revenues earned during the sale period.
Break-even point= fixed costs/contribution margin
Option 1:
Break-even point= 17400/(1000-400)= 29 carpets
Option 2:
Break-even point= (400+200)/(1000-400)=1 carpet (no fixed cost)
Answer:
PLANNING
Explanation:
Planning is the management function and process of thinking about the activities required to achieve a desired goal.
It is the first and foremost activity to achieve desired organizational results.
It involves the creation and maintenance of a plan, such that if the plan is followed, organizations can achieve their goals
Planning is also a management process, concerned with goal definition for a company's future direction and determines the resources to achieve such goals. To achieve goals, managers may develop plans, such as a business plan, sales plan or a marketing plan
