The existence of pre-tax cost of debt and post-tax cost of debt is due
to the acknoledgement of the tax benefit from issuing debt.There is no
tax benefit from paying divdends,so it makes no sense talking about
pre-tax,post-tax cost of equity for a firm.When you think about cash
flow to equity you can only assume that the taxes owed by the company
have already been paid.Now, the taxation over the income of the
shareholder is a whole different issue that does not take place in this
discussion,since it is not taken in consideration either in cost of
equity or cost of debt.
Answer:
The correct answer would be D, Sheila's parents will qualify for a Plus loan because of their low income.
Explanation:
PLUS loan stands for Parents Loan for Undergraduate Students. It is the loan given to the parents of the students who are graduating with the college. It can be a post secondary loan. This loan is given to the students who cannot afford to meet the expenses of their studies as well as of other activities like books, notes, handouts etc. This loan is given to the parents of the students who have low incomes and can't afford to finance their child's education.
Answer:
3 workers
Explanation:
At optimal point, wage = Price * Marginal Product of Labour (MPL)
When 3 workers are employed,
Since wage is given = 25
And price = 4
When 3 workers are hired, wage is close to price * MPL because wage = 25 and p*MPL = 24
OR
salary paid = $25*3 = $75
Revenue generated = 24*$4= $96
This combination provides the best profit margin which is 96 - 75 = $21.
Answer:
involve an immediate cash outlay in order to obtain a future return
require a great deal of analysis prior to acceptance
Explanation:
A capital budgeting decision refers to an investment and the financial commitement. If we considered a project so here the business is making the financial commitment and at the same time it invest in the longer period that have an influence on the future projects
So it is an instant cash outflow for gaining a future return and also have a great deal before accepting it
Answer:
c. $88.17 per order
Explanation:
The computation of the activity rate for the production order is shown below:
Activity rate = Production orders ÷ order size
where,
The Production order is $70,536
And, the order size is 800
Now placing these values to the above formula
So, the activity rate is
= $70,536 ÷ 800 order size
= $88.17 per order
We simply applied the above formula so that the activity rate could come
