Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Rich lives two periods. His earnings in the present are 100; in the future they are 75.6. The interest rate is 8 percent.
a. Suppose that Richs earnings are subject to a 25 percent tax. Suppose also that interest earnings are taxed at the same rate and interest paid is tax deductible. Using our life-cycle model, show that this tax generates an excess burden
b. Suppose now that interest payments are not tax deductible. Does this tax generate an excess burden if Rich is a borrower?
c. Now assume the tax in pail a is scrapped in favor of a consumption tax. What consumption tax rate would yield the same tax revenue? Does this tax distort the choice between present and future consumption?
d. Now assume the consumption tax in part c is instituted, but the deduction of interest payments remains. Does this tax distort the choice between present and future consumption?
It had sales of $6,000,000 and a net income of $1,080,000. The company's total assets as of Dec. 31, 2009 were $14,000,000 and its total assets as of Dec. 31, 2010 were $18,000,000. What is B&M Partners' return on equity?
1. Whitley Transport Company is a regional trucking company headquartered in a southeastern city of the U. S. The company's risk manager is trying to decide whether to recommend to senior management that all of the company's drivers be require..
The company now wants to build a new retail store on the site. The building cost is estimated at $1,100,000. What amount should be used as the initial cash flow for this building project?
Now assume that Bank Z makes a loan in the amount that can be safely lent against the funds deposited in its bank from the transaction described in (b). Show what Bank Z's balance sheet of assets and liabilities would look like after the loan.
Southwest U's campus book store sells course packs for $15 each, the variable cost per pack is $9, fixed costs to produce the packs are $200,000, and expected annual sales are 50,000 packs. What are the pre-tax profits from sales of course packs?
White memoiral hospital has a debt-to-equity ratio of .67. what is the hospital's debt ratio.
This dividen is expected to grow at a rate of 14% for three years and then 6% every year after that forever. The required return on penn' stock is 16%. Caluclate the price of Penn's stock today.
Over the past 5 years, Buster's had annual returns of 5.4 percent, -19.2 percent, 21.2 percent, 14.6 percent, and -2.1 percent. What is the geometric average rate of return?
Asset Investment Beta Stock A $ 149,000 0.94 Stock B $ 131,000 1.39 Stock C 1.54 Risk-free asset How much will you invest in Stock C? How much will you invest in the risk-free asset?
The department has never sold its services outside, but because of its long history of success, larger manufacturers of agricultural products have approached Ideal to hire its R&D department for special projects. Because the costs of operating the..
determine the present values if 5000 in the future i.e. at the end of each indicated time period in each of the
In the cash market, an American Bank (A) can issue either yen 1 billion worth of bonds yielding 5.3% p.a. and priced at par or $10 million worth of bonds yielding 6.5% p.a. and priced at par.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd