Answer: $10,710
Explanation: The FICA tax (Federal Insurance Contribution Act) an employee payroll tax that funds Social Security benefits 6.2% and Medicare health insurance 1.45%.
Company A
Earnings $50,000
r = 6.2%
Social security = $50,000 × 0.062
= $3100
Medicare = $50,000 × 0.0145
= $725
Company B
Earnings = $90,000
Social security = $90,000 × 0.062
= $5580
Medicare = $90,000 × 0.0145
= $1305
Brooke FICA tax obligations of the year.
= $5580 + $1305 + $3100 + $725
= $10,710
Answer:
an overall low-cost provider strategy.
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.
This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.
Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.
Answer:
d. all resources are privately owned and prices are used to coordinate economic activity.
Explanation:
- A mixed economy is a system of the economy that is based on the aspects of the capitalism and the socialism and is the style that protect the private ownership and allows for the levels of the economic freedom.
- In the case of the capital and also allows for the government intervene in the matter of the economy and in order to obtain social aims.
Market is more for everyone working as a group and entrepreneurship is when there is one owner that works
Answer:
5.75%
Explanation:
Firstly, we need to find the yield-to-maturity (YTM) of current outstanding bond as below:
Bond market price = Coupon/(1 + YTM) + Coupon/(1 + YTM)^2 + Coupon/(1 + YTM)^3 +...+ Coupon/(1 + YTM)^20 + Face value/(1 + YTM)^20, or:
1,382.73 = 130/(1 + YTM) + 130/(1 + YTM)^2 + 130/(1 + YTM)^3 +...+ 130/(1 + YTM)^20 + 1,000/(1 + YTM)^20
Solve the equation, we get YTM = 8.85%.
So, if he company wants to issue new debt, its after-tax cost of debt is 8.85% x (1 - 35%) = 5.75%
