Answer: (a) 6%
(b) 10.61%
(c) Yes
Explanation:
a) After tax cost of debt = Yield (1- tax)
= 8 ( 1 - 0.25)
= 8 × 0.75
= 6%
b) 


= 0.1061 or 10.61%
Note: Cost of preferred stock is not tax deductible
c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]
Answer:
$270,000
Explanation:
Calculation for the amount of Machining cost assigned to Product A
Using this formula
Machine cost=Machine hours*Activity rate
Let plug in the formula
Machine cost=1,800*$150
Machine cost =$270,000
Therefore the amount of Machining cost assigned to Product A will be $270,000
Answer:
Arc price elasticity of demand = -0.273
Explanation:
This problem is solved as follows:
1. Identify the data.
Outpatient visit Price / visit
Tokyo 1.25 / month 20y
Hokkaido 1.5 / month 10y
Outpatient visits equal the quantities demanded of the service. Therefore, we can say that:
Qt (Outpatient visits in Tokyo) = 1.25 / month
Qh (Outpatient visits in Hokkaido) = 1.5 month.
With the following prices:
Pt (Price in Tokyo) = 20y
Ph (Price in Hokkaido) = 10 y
2. Apply the formula to calculate arc-elasticity of demand:

We replace the data:



Final answer: -0.27275 or -0.273
Answer:
C. consumer sovereignty.
Explanation:
Consumer sovereignty in economics imply that consumers have the power to determine what will be produced. They do this by demanding for products they want, increasing its supply and demanding less of products they do not want which reduces its supply.
I hope my answer helps you
No, the price will rise because more people are competing for the products