Answer:
6.50%
Explanation:
The after-tax cost of the debt is the yield to maturity after having deducted the tax shield which is computed using the formula below:
after-tax cost of debt=pretax cost of debt*(1-tax rate)
pretax cost of debt=yield to maturity=10%
tax rate=35%
The after-tax cost of debt=10%*(1-35%)
The after-tax cost of debt=10%*65%
The after-tax cost of debt=6.50%
The solution for this problem is get first the total sales, credit sales and receivables turnover.
187,000 / 0.086 = $2,174,418 this is your total sales
2,174,418 x 60% = $1,304,651 is your credit sales
1,304,651 / 126,370 = 10.32 times is the Receivables turnover
365 / 10.32 = 35.37 days is the day's sales in receivables
Answer:
<u>the supply curve</u>
Explanation:
Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.
Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:
- Reduction in tax,
- Reduction in cost of factor of production,
- Expectation of fall in price in future,
The Parent taxpayer is entitled to the earned income credit
<u>Explanation:</u>
The federal income tax credit or income credit in the United States is a refundable tax credit, particularly those with children, for low- to moderate-income working individuals and couples. The EITC benefit amount depends on the income of the recipient and the number of children.
The EITC benefits low to reasonable-income parents but offers very little assistance to workers without eligible children (often referred to as childless workers). Income tax credit (EITC). Workers earn a loan up to a limit of one percent of their income.
An extended period of little or no growth in GDP, wages, and prices is a period of stagnation.
When real economic growth is less than 2% annually it is considered stagnation. Stagnation is a prolonged period of little or no growth in an economy. This no growth economic period affects various sectors of the economy such as GDP, wages, prices etc.
Stagnation can occur as a temporary condition, such as a growth recession or temporary economic shock. Stagnation is a situation which occurs within an economy when total output is either flat, declining, or growing slowly.
Hence, stagnation in economy can occur due to a number of causes.
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