Answer:
After tax cost of debt = 5.44*(1-0.35)% = 3.54%
Explanation:
PV = 106
PMT = 6/2 =-3
N = 16*2 = 32 semi annual
FV = -100
Semi annual yield = 2.72%
Annual cost of debt = 2.72%*2 = 5.44%
After tax cost of debt = 5.44*(1-0.35)% = 3.54%
Using Rate function in Excel or Financial calculator
Answer – Nonrecourse loan
<span>In commercial real estate, the actual borrower is shielded from personal
liability. In this case, the lender cannot lay claim to the personal properties
of the borrower if ever he defaults. This type of loan is commonly referred to
as a nonrecourse loan.</span>
<span>Annual gross income is the amount of money you make BEFORE taxes. Your adjusted gross income is how much money you make before taxes, MINUS anything you can deduct. You can deduct many things, like student loan interest payments and alimony. So, you would have an adjustment if you paid for student loans this year. If your gross income (not adjusted) is $20,000 and you paid $1000 on student loan interest, your adjusted gross income is $19000. The IRS will then see your income as only $19000 instead of $20,000 and will tax you on that lower amount.</span>
Answer:
Price elasticity of demand = 2.6
Explanation:
Given:
Old price (P0) = $70
New price (P1) = $60
Old sales (Q0) = 10,000 units
New sales (Q1) = 15,000 units
Computation of Price elasticity of demand(e):
Midpoint method
By putting the value:
e = 2.6
