Social Rate of Discount

question 46

Essay

Social Rate of Discount. Assume that the rate of return on long-term government bonds is 9%, a typical after-tax return on investment in the private sector is 10%, the marginal corporate and individual tax rate is 50%, and consumption averages 95% of total income.
A. Based on the information provided, calculate an economically appropriate social rate of discount.
B. Would a reduction in the Federal deficit that led to a decline in the long-term government bond rate affect the appropriate social rate of discount? If so, how? If not, why not?

Distinguish between the concepts of power and authority in organizational settings.

Identify types of power exhibited by leaders in organizational contexts.

Understand the distinctions between formal and informal leadership.

Recognize the role of gender in the use of influence tactics within leadership.

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Definitions:

Internal Control

Systems and procedures designed to ensure the accuracy and reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Voucher Register

A record of vouchers that have been prepared, authorized, and paid; it serves as a chronological record of business transactions.

Petty Cash

A small amount of cash kept on hand in a business for making everyday, minor expenditures.

Cash Reserve

Funds that a company sets aside to meet short-term and emergency funding needs.