examines problems with two or more solutions by establishing criteria with which to compare the alternatives
Answer:
A) What is Avicorp's pre-tax cost of debt?
B) If Avicorp faces a 40% tax rate, what is its after-tax cost of debt?
Explanation:
in order to calculate the pretax cost of debt, I will use a $1,000 bond
coupon rate = 5.8% x $1,000 = $58 / 2 semiannual coupons = $29
current bond price $960
years to maturity = 5 x 2 coupons = 10 periods
you can use a financial calculator or an excel spreadsheet to calculate effective annual yield, but we can also calculate it using the yield tot maturity formula:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {29 + [(1,000 - 960)/10]} / [(1,000 + 960)/2] = 3.367% x 2 coupons per year = 6.73%
the after tax cost of debt = 6.73% x (1 - 40%) = 6.73% x 0.6 = 4.04%
Answer:
Advertising bis the act of raising awareness big product to consumers in order to buy more from them than other costumers
Answer:
Service mark
Explanation:
Service mark is the trademark that defines the service identifiable and distinguishes from the company competitors.
The service mark can be used in different forms like-word, image, icon or emblem used to advertise the business and differentiate from the competitors on the market so that people get to know about it plus company may gain the advantage over their competitors.
In the given scenario, the Trek Transport Company is distinct from its other trucking firm in services which reflect the service mark