Answer:
A. the federal government spending more money to build more infrastructure and D. the federal government providing tax refunds to many taxpayers
Explanation:
Please see attachment.
Answer:
c. nominal variable
Explanation:
Nominal variable is a variable that hasn't been adjusted for inflation. E.g. price level
Nominal variable = real variable + inflation rate
Real variable are variables that have been adjusted for inflation rate. E.g. real GDP
Real variable = nominal variable - inflation rate
Relative variable is the value of a variable in terms of another variable. E.g. comparative advantage
Dichotomous variable are variables that can take on either two values when measured e.g. gender
I hope my answer helps you.
The best answer for this question would be:
Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law
<span>Because it solely relies on the performance of the company and how they act through the laws without any illegal practices.</span>
Answer:
Legal
Explanation:
Legal risk is a risk that financial or reputation loss may arise from lack of awareness or misinterpretation of the laws and regulations that apply to a business. Different countries are governed by different laws and regulations. Therefore, there will be a legal risk in operating a business in different foreign countries.
Answer:
To calculate the after-tax cost of debt, multiply the before-tax cost of debt by <u>(1 - tax rate)</u>.
Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is <u>= 10.20% x (1 - 45%) = 5.61%</u>.
At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?
<u>B. 4.47%</u>
pre-tax cost of debt = bond's yield to maturity
approximate YTM = {120 + [(1,000 - 1,329.55)/15] / [(1,000 + 1,329.55)/2] = 98.03 / 1,164.775 = 0.08416 = 8.416%
approximate after tax cost of debt = 8.4% x (1 - 45%) = 4.62 = 4.62
since I used the approximate yield to maturity, my answer is not exact. That is why I have to look for the closest available option.
