Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.
Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs
Change in Value of firm
=Net Effect of Debt Financing
=Present Value of Interest Tax Shield (financial distress costs ignored)
= DebtValue * Cost of Debt * Tax Rate Interest Rate
= $1,000 * 10% * 20% 10%
=$200,
corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.
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Answer:
A change in quantity demanded is caused only by
A) price
B) a shift
C) Market
D) Income
The answer is Price(A)
Explanation:
Hope this helps :D
He is known as a VENDOR. A vendor is a part of the supply chain, he makes goods and services available to companies and consumers. Companies typically provide a vendor with purchase order which clearly states the products that the company wants to buy, the number of units needed, the price, the delivery date and other specifics.
Answer:
Option (a) is correct.
Explanation:
Given that,
Initial Quantity supplied = 10,000
New quantity supplied = 15,000
Initial price = $5
Price elasticity of demand = 1.8
Percentage change in quantity supplied:
= [(New quantity supplied - Initial Quantity supplied) ÷ Initial Quantity supplied] × 100
= [(15,000 - 10,000) ÷ 10,000] × 100
= (5,000 ÷ 10,000) × 100
= 50%
Let the new price be x,
Percentage change in price:
= [(New price - Initial price) ÷ Initial price] × 100
= [(x - $5) ÷ $5] × 100
= (x - 5) × 20
= 20x - 100
Therefore,
Price elasticity of demand = Percentage change in quantity supplied ÷ Percentage change in price
1.8 = 50 ÷ (20x - 100)
1.8 (20x - 100) = 50
36x - 180 = 50
36x = 230
x = 5
Hence, the new price per pound of walnuts is $5.
Answer:
A. True
Explanation:
The term business intelligence refers to the plans, process through which the raw data is to be converted into meaningful information that became relevant for the ethical decision making so that the goals and the objectives of the company could be accomplished.
Data + Process = Information
Collection of information through internal and external parties would also help to analyze the trends, patterns for better decision making.
Therefore, the given statement is true.
