I think it's <span>D. Workers can save for retirement and defer income taxes on the savings</span>
Answer:
$5,000
Explanation:
A perpetuity pays $250 every year
The appropriate interest rate is 5%
= 5/100
= 0.05
Therefore the present value of the perpetuity can be calculated as follows
= 250/0.05
= $5,000
Hence the present value of the perpetuity is $5,000
Answer:
lost-update program
Explanation:
lost-update program is problem that occurs in database system when two different data or transaction are simultaneously saved on the same column and on the same row within a database. This conflict results to the loss of the first part of the saved data because it will be overwritten by the other different data for transaction.
From the question, Charles and Irene are working on the same copy of data, Charles's data overwrite Irene's leading to what is known as lost-update program
Answer:
WACC is 9.35%
Explanation:
In order for us to compute the weighted average cost of capital, we have to first find the cost of equity (Ke) and the cost of debt (Kd)
1. Ke can be found by using CAPM - Capital Asset Pricing Model.
CAPM Formula: Ke = Rf + b(Rm-Rf)
where Rf = Risk free rate; Rm = Return expected of the market; b = beta
Therefore = Ke = 3% + 0.9(11%-3%) = 10.2%
2. Kd = Coupon rate (1 - tax rate), coupon rate is 7%, tax rate is 35%
therefore Kd = 7 (1-0.35) = 4.35%
Lastly we apply the WACC Formula which is Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt)
We are not given the values of equity and debt, bur we are given the fractions; we will use the fractions.
Therefore: Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt) = (10.2%*85%)+(4.35%*15%) = 9.35%
Answer:
Complete detailed step wise solution is given below:
