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bija089 [108]
3 years ago
8

If the tax laws were changed so that $0.50 out of every $1.00 of interest paid by a corporation was allowed as a tax-deductible

expense, this would probably encourage companies to use more debt financing than they presently do, other things held constant. True False
Business
1 answer:
Nastasia [14]3 years ago
5 0

Answer: False

Explanation:

Interest paid by Corporations on debts are already a tax deductible expense. If laws were changed allowing $0.5 out of every $1.00 to be tax deductible, that would mean that $0.5 would still have to be paid tax on. That would mean that Corporations now have to pay more taxes because current tax laws allow for every $1 of interest (100%) to be tax deductible.

It is therefore unlikely that Corporations would borrow more.

If you require any clarification do react or comment.

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Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featu
Alex

Answer:

D, product-communication adaptation

Explanation:

Product adaptation can be defined as the process of modifying a product to make it useful for a variety of users.

Communication adaptation can also be defined as the change in a product's communication as a result of a change in product strategy.

Product-communication adaptation can be defined as the modification of a product for a variety of users but ensuring that the marketing of the product is through standard communication channels.

In the case of Campbell adapted his product to look like M'm M'm Good product but ensured that he used a standard communication channel (ads) to market his product.

Cheers.

6 0
3 years ago
Derek, an employee at ferns tech inc., has filed a lawsuit against his employer. he claims that after the introduction of an aff
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6 0
3 years ago
Jerry's Phone Service is a monopoly. To find the amount of phone service that this company will provide, Jerry finds the point a
Vadim26 [7]

Jerry will find the point of equilibrium. This is the point where marginal cost equals marginal revenue. This is the point that is Jerry produces anymore, it will start to cost him more than he makes. Thus, Jerry will stop providing new service at this point.

7 0
3 years ago
Read 2 more answers
Find the cost of equity for Consolidated Wheels and Axles Inc. using the information below: The firm's beta estimate is 0.9 The
SpyIntel [72]

Answer:

r or expected rate of return = 0.1077 or 10.77%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

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r or expected rate of return = 0.1077 or 10.77%

8 0
3 years ago
Explain what a trade war is
kolezko [41]

Answer: A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.

Explanation:

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3 years ago
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