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Lana71 [14]
3 years ago
8

​Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.1 %. Its tax rate is 40 %. What is​

Laurel's effective​ (after-tax) cost of​ debt? ​ NOTE: Assume that the debt has annual coupons. ​Note: Assume that the firm will always be able to utilize its full interest tax shield.
Business
1 answer:
Ipatiy [6.2K]3 years ago
6 0

Answer:

4.26%

Explanation:

The computation of the Laurel's effective​ (after-tax) cost of​ debt is shown below:

= Cost of debt × (1 - tax rate)

= 7.1% × (1 - 0.40)

= 4.26%

The cost of debt is also known as the yield to maturity.

For computing it, we deduct the tax rate from the cost of debt so that the accurate rate can come

All other information which is given is not relevant. Hence, ignored it

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Which of the following statements is​ true?
pashok25 [27]

Answer:

D. None of the above.

Explanation:

When there's a change in demand, the demand curve shifts and only quantity demanded changes- it either increases or reduces but price doesn't change. A change in demand is caused by factors that affect a consumer's demand for a good other than the price of the commodity.

Some of the factors that cause a change in demand include:

1. Change in income

2. Change in taste

3. Season

When there's a change in supply, the supply curve shifts and quantity supplied changes but there's no change in price. Change in supply is caused by other factors that affect supply other than price.

8 0
4 years ago
Selling or mortgaging an asset, such as a house or land, is one way an
Alexxx [7]

Answer:

A. finance

Explanation:

Finance is the section of business that deals with money. Raising capital through various methods would fall under the finance part of the business.

Finance is among the functional areas of a business. It involves sourcing and allocating money to other areas of the business. Finance is closely associated with accounting. Other functional areas of a business include marketing, human resources, administration, and production.

4 0
3 years ago
Explain why a city council meeting to discuss hiring more city employees must be open to the public, while a meeting to discuss
ad-work [718]

Answer:

The answer is because people should know who is coming into office, but they do not have the right to know why someone is being fired for private reasons.

Explanation:

It’s important for the hiring discussion to be made public by the city council since it relates to the use of public funds to compensate these additional workforces. In contrast, firing processes do not relate to incurring funds and thus the public does not need to know about the reasons of the firing.

7 0
4 years ago
What are the reasons for having internal controls that facilitate ethical behavior?
givi [52]

Answer:

Mostly Preventive Controls  and feedback Controls

Explanation:

For this case is important to conduct preventive and feedback controls.

The definition of preventive control is "Controls that are used to keep a loss or an error from occurring". And is improtant to do these controls continuosly in order to ensure that the ethical behavior is accomplished by all the people analyzed.

The definition of feed back controls is "a process that owners and manager uses to evaluate if their teams meet the stated goals at the end of a production process"

And for this case these two controls are so important when we want to facilitate check ethical behavior since the conduct is something that needs to be measured in all the time in order to ensure the condition for any employee.

5 0
3 years ago
g You earn $40,221 at your job and must pay 11% of your income in taxes. You then decide to save 8% of your disposable income. H
Yanka [14]

Answer:

The amount left for consumption spending is $32,932.95

Explanation:

The amount left for consumption spending is known as disposable income or take-home pay less savings .The disposable income is the income left after taxes have been paid to relevant tax authority.The computation of amount left for consumption is done below:

Gross income                                           $40,221

Tax at 11%(11%*$40,221)                            ($4424.31 )

Disposable income                                   $35,796.69

Savings at 8% of disposable income

($35,796.69*8%)                                          ($2,863.74)

Amount left for consumption spending     $32,932.95

This is not mean that I have to spend this $32,932.95 during the month, there might some investments  I want to my money on to yield more returns.

4 0
3 years ago
Read 2 more answers
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