Answer:
The correct answer is A. the markets cannot be allocationally efficient
Explanation:
The rule of 72 says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72.
so in this equation we would use: 72/x=12 then you solve for X
X = 6%
So it would take approximately 6% ROI
The method of achieving the reduction in the budget deficit is to simply reduce expenses and increase tax.
<h3>What is a budget deficit?</h3>
It should be noted that budget deficit simply means when the expenses is more than the revenue.
In this case, the method of achieving the reduction in the budget deficit is to simply reduce expenses and increase tax. This is needed to improve the budget.
Learn more about budget on:
brainly.com/question/6663636
Answer:
The total stockholders' equity amounts to $640,000
Explanation:
The total stockholders' equity is computed as:
Total stockholders' equity = Common Stock + Paid-In Capital in Excess of Par + Retained Earnings - Treasury Stock
where
Common Stock is $375,000
Paid-In Capital in Excess of Par is 90,000
Retained Earnings is 190,000
Treasury Stock is 15,000
Putting the values in the above:
= $375,000 + $90,000 + $190,000 - $15,000
= $655,000 - $15,000
= $640,000
Answer:
after-tax cost of debt 5.2725%
Explanation:
We will solve for the market rate of the bonds which is the one that makes the maturity and coupon payment equal to its current market price:
We sovle it using a financial calcualtor or excel goal seek tool
C 110.000 (1,000 x 11%)
time 10 years
<em>rate 0.070304812</em>
PV $771.5066
Maturity 1,000
time 10 years
<em> rate 0.070304812</em>
PV 506.90
PV c $771.5066
PV m $506.9034
Total $1,278.4100
Now that we find that market rate is 7.03%
we calcautle the after tax cost of debt:
7.03 x (1 - 25%) = 5.2725%
