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Tom [10]
3 years ago
13

Check my work Check My Work button is now disabledItem 5Item 5 6 points The aftertax cost of debt: Multiple Choice varies invers

ely to changes in market interest rates. will generally exceed the cost of equity if the relevant tax rate is zero. will generally equal the cost of preferred if the tax rate is zero. is unaffected by changes in the market rate of interest. is highly dependent upon a company's tax rate.
Business
1 answer:
DaniilM [7]3 years ago
7 0

Answer: is highly dependent upon a company's tax rate.

Explanation:

The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt

equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).

The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.

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________ feasibility refers to projecting whether the system will operate and be used once it is installed.
ivann1987 [24]
The answer is Technical
I hope that helped
7 0
3 years ago
Purchase
USPshnik [31]

Answer:

The total cost to be capitalized for each of these two pieces of equipment:

Purchase equipment = $180,708

Construction equipment = $678,432

Explanation:

a) Data and Calculations:

Purchase

Cash paid for equipment, including sales tax of $7,400 $155,400

Freight and insurance cost while in transit                            2,960

Cost of moving equipment into place at factory                   4,588

Wage cost for technicians to test equipment                       5,920  

Special plumbing fixtures required for new equipment      11,840

Total cost to be capitalized =                                           $180,708

Construction

Material and purchased parts (gross cost $296,000; failed to take 2% cash discount)                                  $296,000

Imputed interest on funds used

during construction (stock financing) 20,720

Labor costs                                          281,200

Allocated overhead costs:

Fixed                                 $29,600

Variable                             $44,400     74,000

Cost of installing equipment                 6,512

Total capitalized costs =                 $678,432

8 0
2 years ago
Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on
lozanna [386]

Answer:

Turnover Company

The net income of Turnover will increase by $500,000.

Explanation:

a) Data and Calculations:

Turner Company's shareholding in ICA = 10%

ICA pays dividend totalling $5 million

Turner's share of dividend = $500,000 ($5 million * 10%)

b) This is not based on equity accounting.  Instead, the investment will be reported at fair value.  Equity accounting method will be applied in recording Turner's investments in ICA Company, if the ownership interest is valued at 20–50% of the stock.

c) The $500,000 dividends received from ICA Company will be reported in the Income Statement of Turner Company as other income, unless Turner ordinarily buys and sells stocks.  The 10% shareholding does not amount to significant control or influence for the accounts of Turner and ICA to be consolidated.

6 0
3 years ago
If the economy is at potential output, and the Fed _____ the money supply, in the long run, the price level will likely _____.
serg [7]

Answer:

If the economy is at the potential output and the Fed increases the money supply, in the long run real GDP will likely remain the same.

Explanation:

hoped this helped

4 0
3 years ago
______ effect happens when the place a product was manufactured influences how consumers perceive the product.
stiks02 [169]

Effect happens when the place a product was manufactured influences how consumers perceive the product.  Country of Origin

What benefits do consumer product firms derive by marketing internationally?

Competition with other companies can be maintained. Sales and profits can be enhanced. Life cycles of products can be extended.

Country of origin:

Country of origin represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation process.

Learn more about country of origin:

brainly.com/question/19048062

#SPJ4

8 0
1 year ago
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