Answer:
10%
Explanation:
Given that,
Interest at last year debt = 8%
Current year cost of debt = 25% higher
Firms paid for debt last year = 10%
Firms paid for debt in current year = 12.50%
Kd - cost of debt
Yield = Interest at last year debt × (1 + increase in cost of debt)
= 8% × (1 + 0.25)
= 8% × 1.25
= 10%
Kd = Yield (1 – T)
Kd = 10% (1 – 0)
= 10% (1)
= 10%
Therefore, after tax cost of debt would be 10%.
Answer:
Keep credit card account numbers and toll-free numbers in a separate place from your credit cards so that you can easily find the information when you need it.
Explanation:
Answer
The government increasing the quantity of money in the economy by printing more money will lead to inflation and increase the problem.
Explanation:
If the government believes the economy is not producing goods and services at its optimal level, increasing the quantity of money in the economy by printing more money, will not bring a solution because more money in circulation will bring inflation and that means that the cost of inputs for production of goods and services will increase thereby leading to lower output from production. Hence printing more money is not a realistic solution
Answer:
- By what method will the investment work for me?
- What amount do I hope to acquire on this investment?
Explanation:
An investment is an advantage or thing gained with the objective of producing pay or appreciation. In a monetary sense, an investment is the acquisition of products that are not expended today yet are utilized later on to make riches. In fund, an investment is a money related resource bought with the possibility that the benefit will give salary later on or will later be sold at a more significant expense for a benefit. Putting away is giving cash something to do to begin or extend an undertaking - or to buy an advantage or premium - where those assets are then given something to do, with the objective to salary and expanded an incentive after some time. The expression "investment" can allude to any instrument utilized for creating future pay. In the monetary sense, this incorporates the acquisition of securities, stocks or land property among a few others. Furthermore, a built structure or other office used to deliver merchandise can be viewed as an investment. The creation of products required to deliver different merchandise may likewise be viewed as contributing.
Answer:
$5
Explanation:
If Premier Co. incurs a unit-level cost of $490 per unit
Product design cost = $50000
Facility-level cost = $100000
No of units produced annually = 10000
Product design cost/unit = $50000/10000 = $5
Facility-level cost/unit = $100000/10000 = $10
Hence total production cost per unit = $490 + $5 + $10 = $505
However, the supplier is willing to produce the bench at $500 per unit
Thus avoidable production cost for 1 bench = $505 - $500 = $5