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3 years ago

Which of these factors helped hide economic problems in the 1920s?

Business

1 answer:

dybincka [34]3 years ago

7 0

C: Americans purchased many consumer goods on credit

Hopefully this helps.

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Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic

timurjin [86]

Answer:

14.58%

Explanation:

Return on Bond is the actual rate that is received by an investor on investment in bond.

As per given data

After Tax return = 10.50%

Tax Rate = 28%

Deduction of 28% withholding tax will be made on the return of the bond in that country where investment is made and investor will have return net of tax.

We can calculate the after tax return on the bond as follow

After tax return = Before tax return x ( 1 - Tax rate )

10.5% = Before tax return x ( 1 - 28% )

0.105 = Before tax return x ( 1 - 0.28 )

0.105 = Before tax return x 0.72

Before tax return = 0.105 / 0.72

Before tax return = 0.1458 = 14.58%

4 0

4 years ago

Warephase Corporation has preferred stock outstanding. The stock has a 16% dividend rate. The stockâs market price is $80 per sh

alina1380 [7]

Answer:

The cost of the company’s preferred stock financing is 15.7%

Explanation:

In this question, we are asked to calculate a company’s cost of preferred stock financing.

Firstly, we calculate the annual dividend of the company.

Mathematically, that is equal to dividend rate * par value

From the question, dividend rate is 16% while par value is $75

Thus, Annual dividend is 16/100 * 75 = $12

To get the cost of preferred stock, we employ a mathematical approach.

Mathematically, cost of preferred stock = Annual dividend/(current price - floatation cost)

From the question, current price is $80 while the floatation cost is $3.5 per share.

Cost of preferred stock = 12/(80-3.5)

= 12/76.5 = 0.157

This is same as 15.7%

5 0

3 years ago

Read 2 more answers

List of People and Business you would include on your team:

nlexa [21]

Answer:

Technologically wise poeple

I have a zeal for learning coding

5 0

2 years ago

The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making

Gelneren [198K]

Answer: (a) 6%

(b) 10.61%

(c) Yes

Explanation:

a) After tax cost of debt = Yield (1- tax)

= 8 ( 1 - 0.25)

= 8 × 0.75

= 6%

b) $cost\ of\ preferred\ stock =\frac{dividend}{price-flotation\ cost}$

$cost\ of\ preferred\ stock =\frac{5.20}{52-3}$

$cost\ of\ preferred\ stock =\frac{5.20}{49}$

= 0.1061 or 10.61%

Note: Cost of preferred stock is not tax deductible

c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]

8 0

3 years ago

The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea

steposvetlana [31]

Answer:

P (x) = 80x - 2x^2 - 3

Explanation:

The Profit function is the revenue minus the cost.

Revenue = Price x Quantity = X.px = x(88-2x) = 88x - 2x^2

Therefore the profit function P (x):

P (x) = 88x - 2x^2 - (8x+3)

P (x) = 80x - 2x^2 - 3

To maximise profit we use the 1st order condition: dP(x)/dq = 0

Therefore, 80 - 4x = 0

4x = 80

x = 20

So 20 leashes maximises profit.

P(x) = 80(20) - 2(20)^2 - 3

P = $803

The price to charge would be:

p (x) = 88 - 2(20) = $48

The best reason would be that the price is a bit expensive for a leash so most people would not buy it.

6 0

3 years ago