The after-tax cost of debt is 6.28%. Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.
<h3>What is After-tax cost?</h3>
- After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
- WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
- WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).
Therefore,
The after-tax cost of debt is 6.28%.
FV = -$1,000
PMT = -$100
N = 20 years
PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.
Compute I/Y = 9.511%
After-tax cost of debt = 9.511%×(1-.34) = 6.28%
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Answer:
20%
Explanation:
Given that
Advertising elasticity of demand = 0.25
Quantity demanded = 5% increase
Recall that
Elasticity = change in demand/change in advertising
That is
Change in advertising = Change in demand / elasticity of production
Therefore, change in advertising
= 5/0.25
= 20%
Advertising must increase by 20% in order to increase demand by 5%
Answer:
The twelve are all important mechanisms for embedding organizational culture, but personally, I believe the following are the most important ones when you are referring to social connections between coworkers:
- 3. Rites and rituals PART OF THE ORGANIZATION'S CULTURE AND VALUES
- 4. Stories, legends, and myths PART OF THE ORGANIZATION'S CULTURE AND VALUES
- 5. Leader reactions to crises LEADERS ARE SPECIALLY NEEDED WHEN THINGS ARE NOT GOING WELL, AND LEADERSHIP CAN UNITE A GROUP
- 6. Role modeling, training, and coaching IT IS VERY IMPORTANT FOR THE PERSON BEING TRAINED TO BE ABLE TO UNDERSTAND HOW THE ORGANIZATION'S CULTURE WORKS
- 7. Physical design OPEN LAYOUTS ARE GOOD FOR SOCIAL CONNECTIONS.
- 11. Organizational structure HORIZONTAL ORGANIZATIONS FOSTER SOCIAL CONNECTIONS AND EQUALITY WITHIN THE ORGANIZATION
Explanation:
Social connections at work refer to how coworkers relate to each other and they are the backbone of the company's culture. Social connections are positive because they can increase your psychological well-being (we are all social animals that need to feel that we belong), your physical health and your work productivity.
