B. To focus on a global market.
Answer:
the net cost of debt to a firm is generally less than the cost of equity.
Explanation:
If we assume both, investor in firms and lender to firms want's a certain return x
because the lender return (the interest) are tax deductible the net cost of debt will be: x ( 1 - t)
where t is the tax rate being rate beteen 0 and 1
as 1 less a fraction will be less than 1 we can stablish that:
x > x(1 - t)
x is the cost of equity
while x(1-t) is the net cost of debt
therefore, the cost of debt is lower than cost of equity.
Ecology is a systematic relationship of all living things with each other and their interaction with the environment that they live in. All living things in the world are connected with each other in terms of energy. So, it affects child development in ways of eating food from plants and animals. Moreover, the child could be molded by social interactions within the community.
Answer:
To find the present value of the interest payments, multiply <u>$3,000</u> by the present value factor <u>8.1109</u>.
Explanation:
the market price of the bonds:
- present value of face value = $100,000 / (1 + 4%)¹⁰ = $67,556.47
- present value of coupon payments = $3,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $24,332.70
market price = $91,889.17
Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.
