1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zina [86]
3 years ago
14

An investment has the following characteristics:ATIRRP: After-tax IRR on total investment in the property: 9.0%BTIRRE: Before-ta

x IRR on equity invested: 17%BTIRRP: Before-tax IRR on total investment in the property: 12%t: Marginal tax rate: 0.40What would be the break-even interest rate (BEIR), at which the use of leverage neither favorable nor unfavorable? (A)(A) 15.0%(B) 20.0%(C) 22.5%(D) 28.3%
Business
1 answer:
Strike441 [17]3 years ago
7 0

Answer:

Option (A) is correct.

Explanation:

Given that,

After-tax IRR on total investment in the property = 9.0%

Before-tax IRR on equity invested = 17%

Before-tax IRR on total investment in the property = 12%

t: Marginal tax rate = 0.40

Break Even Interest rate (neither favorable nor unfavorable):

= After tax IRR on total investment ÷ (1 - Tax rate )

= 9% ÷ (1 - 0.40)    

= 9% ÷ 0.60

= 15%

You might be interested in
Who thinks that Brainly Inc. removing private message and profile comment features is a bad PR decision?
Dennis_Churaev [7]

Answer:

I dooooooooooooooooo ☝☝

7 0
3 years ago
Which of the following would be considered acts of violence?
balu736 [363]

Answer:

I thinks that all of them will be considers as acts of violence ( not sure about intimidation but I guess it will also counts?

5 0
3 years ago
Read 2 more answers
SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. True False
Kamila [148]

Answer:

False

Explanation:

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats is a FALSE statement. SWOT analysis means

Strength

Weakness

Opportunities

Threat

Strength and weaknesses are the internal factors not external ones, strength and weakness comes from inside of the organisation. Any organisation capability to serve the customers well, having red hot selling products, creative employees can be its strength. If these elements are not performing well, they can become the weakness as well, therefore, SW is related with the internal environment of the organisation.

In the same way, opportunities and threats are posed by the outside environment, they are not internal elements and factors. Political, social, technological and legal environment can create both treat as well new and exciting opportunities for the organization.

3 0
3 years ago
What is an advantage of attending a trade school?
pantera1 [17]

Answer:

I would say it B ............

4 0
2 years ago
What is the meaning of statistics??​
Nookie1986 [14]

Explanation:

1 : a branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data. 2 : a collection of quantitative data.

4 0
3 years ago
Read 2 more answers
Other questions:
  • This is a system on the Internet that is like a phone book, where it matches a Domain name, such as www.google.com, (Links to an
    15·1 answer
  • Kimberly has been helping Jonah in preparing his personal income tax forms for a couple of years. Jonah's boss recommended Kimbe
    14·1 answer
  • Frantic Fast Foods had earnings after taxes of $1,070,000 in 20X1 with 311,000 shares outstanding. On January 1, 20X2, the firm
    14·1 answer
  • Mellon Corporation The data presented below is Mellon Corporation for the year ended December 31, 2015: Sales (100% on credit) $
    9·1 answer
  • Tom maintains a popular blog that highlights restaurants in the Chicago area. Tom provides recommendations on the restaurants, p
    12·1 answer
  • The Acme Aircraft Seat Company produces aircraft seats and is able to assemble 2 seats in 30 minutes using four workers. The sin
    9·1 answer
  • Robinson Manufacturing found the following information in its accounting records: $523,000 of direct materials used, $215,000 of
    11·1 answer
  • Total revenue equals A. change in price per unit times quantity sold. B. price per unit times change in quantity sold. C. price
    12·1 answer
  • 1. Sell product for $25,000 with historical cost of $20,000 2. Sell product for $20,000 with historical cost of $16,000 3. Sell
    5·1 answer
  • randy and debbie are in charge of training new marketing department employees at company abc. in a training session, debbie comm
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!