Which of the following are generally considered to be uncontrollable government expenditures?

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo

kodGreya [7K]

Answer:

5.4%

Explanation:

Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Face value of bond = coupon amount / interest rate

1000 = 80 / 8%

Therefore 900.9 = 80 / revised interest rate

multiply both sides by the 'revised interest rate

revised interest rate x 900.9 = 80

Hence, revised interest rate = 80 / 900.9 = 9%

Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)

where:

kd = Cost of debt

t = tax rate

Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%

4 0

3 years ago

ada inc. stopped its production of oral care goods after determining apparel production to be its new primary objective. this is

ale4655 [162]

Ada Inc. stopped its production of oral care goods after determining apparel production to be its new primary objective, which is a direct result of the <u>c. </u><u>strategic planning process</u> at Ada Inc.

<h3>What is the role of strategic planning?</h3>

Strategic planning provides long-term direction to an organization's decision-makers.

Strategy planning helps the organization's leaders define their vision for the future and to marry their organization's goals and objectives with available and future resources.

The elements captured in strategy planning include the organization's vision, mission, SWOT analysis, core values, goals, objectives, and action plans.

Strategy planning remains a mere planning process until the formulated strategies go through these stages: formulation, implementation, successful outcomes, and evaluation.

Thus, at Ada Inc., there is an ongoing strategic planning process.

Learn more about the strategic planning process at brainly.com/question/17924318

#SPJ1

<h3>Question Completion with Answer Options:</h3>

a. tactical

b. research

c. strategic

d. economic

4 0

1 year ago

When an economy is temporarily operating at an output that is beyond its full-employment rate it means that

MrMuchimi

It means that excess demand in resource markets will lead to higher resource prices, which will increase costs and direct the economy toward full employment.

Explanation:

An economy’s full employment output is the highest production level when all available resources are used efficiently. It equals the highest level of production an economy can sustain for the long-run. It is also referred to as the full employment production which results in long term supply of the finished good.

When there is increased demand then eventually there will be an increase in the price and also costs of the production which leads the economy towards the full employment output as it is a sustainable output.

3 0

3 years ago

When might adding an additional employee be bad for a small business?

Anarel [89]

Answer:

If the demand for the product or services goes down

Explanation:

A reduction in demand for a good or service results in a decline in its price. As per the law of supply and demand, a decline in demand while holding other factors constant pushing the equilibrium price down. Reduced prices mean that the revenues obtained from the sales of the product or service will decline.

Hiring an extra worker when the demand is low will lead to losses. Low demand causes low prices, which implies that the cost of the new employee will be greater than the benefits obtained from the worker. A reduction in prices will mean that the marginal product of labor will be lower than the cost of labor.

3 0

3 years ago

Stopping a vehicle with good brakes from 20 miles per hour under good conditions requires about:

Anuta_ua [19.1K]

About 40 jewls of power in the other direction

5 0

3 years ago