They are referred to as installment notes
Answer:
The correct answer is b) Actual cash value.
Explanation:
Insurance industry’s ACV is define as "the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.)."
Answer:
a) $0.5145 million
b) $7.35 million
Explanation:
Given:
Permanent debt outstanding = $35,000,000
Expected marginal tax rate = 21%
a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.
To find annual interes tax shield use the formula below:
Annual interest tax shield =Total par value of Debt × interest rate × tax rate
= $35,000,000 × 7% × 21%
= $35,000,000 × 0.07 × 0.21
= $514,500
Annual interest tax shield = $0.5145 million
b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?
Use the formula:
Present value of the interest tax shield = Annual interest tax shield /loan interest rate
= $514,500 / 7%
= $7,350,000
present value of the interest tax shield = $7.35 million
I believe the answer is FFA.
Hope this helps.
(Please mark this brainliest, I would really appreciate it) Thanks!
Answer:
$15 trillions
Explanation:
The computation of the GDP is shown below:
GDP = Consumption + Investment + Government purchase + Net exports
where,
Consumption = $10 trillions
Investment = $2.5 trillions
Government purchase = $3 trillions
Net exports = Exports - imports
= $1 trillion - $1.5 trillion
= -$0.5 trillion
So, the GDP would be
= $10 trillions + $2.5 trillions + $3 trillions - $0.5 trillions
= $15 trillions
= 13.5 trillions
