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3 years ago

Which of the following statements is CORRECT?

Business

1 answer:

vovikov84 [41]3 years ago

5 0

Answer:

Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years.

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1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

7 0

3 years ago

The following labor standards have been established for a particular product:

andrey2020 [161]

Answer:

Results are below.

Explanation:

<u>To calculate the direct labor rate and efficiency variance, we need to use the following formulas:</u>

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (17.7 - 17.8)*7,600

Direct labor rate variance= $760 unfavorable

Actual rate= 135,280/7,600= $17.8

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (4*1,800 - 7,600)*17.7

Direct labor time (efficiency) variance= $7,080 unfavorable

4 0

2 years ago

Suppose that hypothetically there are only two countries in the world: Japan and South Korea Now suppose that at the end of year

Yanka [14]

Answer:

i) $21 billion

ii) $0

iii) $0

Explanation:

GIVEN DATA : ( two countries )

At the end of year 2

net exports = $20 billion for Japan

Interest earned from assets = $1 billion for Japan

i) The balances for the current account for Japan

export value + interest earned from assets

= $20 billion + $1 billion = $21 billion

ii) Financial account for Japan

Financial account for Japan will be zero because there is no increase or decrease in number of its assets within the given period

iii) capital account for Japan

Capital account of Japan will will have a zero balance. this is because Capital account is used to record foreign investments, local investment and the reserve account as well. and there was no investment captured within the given time that was made by Japan

5 0

3 years ago

If someone stole from you ... and you stole it back ... would you technically still be stealing it ? .

dsp73

Answer:

yes that would still be stealing unless you where taking back what they stole from you but if you take a random thing that wasn't yours to begin with that would be stealing

8 0

3 years ago

Read 2 more answers

Inez hires josh to paint her portrait to her satisfaction for $4,000. when josh finishes the portrait, inez announces that she i

mamaluj [8]

If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.

7 0

2 years ago