Which of the following would increase the value of the multiplier? increase the value of the multiplier. a. An increase in the marginal tax rate (Click to select) b. An increase in the marginal propensity to save (Click to select) increase the value of the multiplier. c. An increase in the marginal propensity to consume (Click to select) increase the value of the multiplier. d. A decrease in the marginal propensity to import (Click to select), increase the value of the multiplier. (Click to select) would would not

Which of the following would increase the value of the multiplier? increase the value of the multiplier. a. An increase in the marginal tax rate (Click to select) b. An increase in the marginal propensity to save (Click to select) increase the value of the multiplier. c. An increase in the marginal propensity to consume (Click to select) increase the value of the multiplier. d. A decrease in the marginal propensity to import (Click to select), increase the value of the multiplier. (Click to select) would would not

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter17: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How is the compressed adjusted present value (APV) model different from the Modigliani and Miller models? (Hint: consider the tax shield's discount rate.) What about this model is "condensed"?)
Which of the following formulas can be used to represent targeted pretax profit, πB, as a function of targeted after-tax profit, πA, given an effective income tax rate of t? Multiple Choice πB = πA/(1 - t) πB = πA × (1 + t) πB = FC/(1 − t) πB = (1 + t)/πA πB = πA × (1 − t)
Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
4. Which of the following is the best definition of sustainable income? a. Sustainable income is a measure of solvency that does not include capital expenditure b. Sustainable income is the same as net income. c. Sustainable income is income that is unusual in nature and infrequent in occurrence. d. Sustainable income is the most likely level of income to be obtained in the future.
19 Which of the following segment performance measures will decrease if there is an increase in the tax expense for that segment? Return on Investment Residual Income A) Yes Yes B) No Yes C) Yes No D) No No Choice A Choice B Choice C Choice D
Question 1: This question asks you to reconsider the model of optimal sin taxes that we studied in class with a different distribution of types. Assume that everyone has p 65 and y= 40. Assume further that proportion o of the population has B = 0.85 while proportion 1– o has B = 1 (both types have 8 = 1). (a) As a function of o and t, what is the uniform lump-sum transfer? (b) As a function of o and t, derive an expression for social welfare. (c) Solve for the optimal tax. (d) How does the optimal tax depend on ø? Provide some intuition for this answer.
5) Which of the following will cause a movement from one point on an AD curve to another point on the same AD curve? a) a change in government expenditures b) a change in the price level c) a change in net exports d) all of the options provided 6) Here is a consumption function: C = CO + MPC(Yd). If MPC is 0.80, then we know that a) as Co rises by $0.80, Yd rises by $1. b) Yd rises by $0.80. c) as Yd rises by $1. Co rises by $0.80. d) as Yd rises by $1, C rises by $0.80. 7) An aggregate demand (AD) curve shows the a) none of the options provided is correct b) quantity of output that people are willing and can afford to buy at different price levels, ceteris paribus c) quantity of output that people are willing as well as able to produce and sell at different price levels, ceteris paribus. d) value of a particular good that people are willing and able to buy at a particular price, ceteris paribus. d) value of a particular good that people are willing and able to buy at a particular…
j. calculate the EBIT: calculate the net income: calculate the OCF: what is the depreciation tax shield:
Which one of these statements related to discounted payback is correct? Discounted payback does not require a cutoff point. O ооо The discounted payback period increases as the discount rate decreases. Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback is biased towards short-term projects.
Is it okay to solve the payback period using the initial investment divided by the after-tax cashflow?
QUESTION 22 This question asks you to compare the Slutsky equations for the consumer's model with monetary income (CM) and for the consumer's model with endowments (CE). Consider the demand for good x and how this demand changes as the price of good x increases O a. In both the CM and the CE models, if x is a normal good, then the demand for good x must decrease O b. In both the CM and the CE models, if x is an inferior good, then the demand for good x must increase Oc Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net seller of good x before the change in price Od. Suppose x is a normal good. While in the CM model the demand for good x must decrease, in the CE model the demand for good x may increase if the consumer is a net buyer of good x before the change in price Oe Suppose x is a normal good. While in the CM model the demand for good x must increase, in the CE model the…
When do you think a person would opt to use the Payback Period Method instead of the Net Present Value or Internal Rate of Return? Give an example.