Answer: Debt being less risky than equity and interest payments being tax deductible.
Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.
Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .
Answer:
The average total cost of producing 60 units of output is:
b. $21.67
Explanation:
a) Data and Calculations:
Variable Fixed Output Marginal Physical Total Total Marginal
Input Input Product of Variable fixed variable Cost
input cost cost
0 1 0 $500 $0
1 1 10 (A) $500 $200 (F)
2 1 25 (B) $500 400 (G)
3 1 45 (C) $500 600 (H)
4 1 60 (D) $500 800 (I)
5 1 70 (E) $500 1000 (J)
The total cost of producing 60 units of output = $1,300 ($500 + $800)
Average total cost of producing 60 units of output = $21.67 ($1,300/60)
The answer will be B. It increased
Answer:
Turbotax
Explanation:
it's easy to use especially for first timers.