1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
1. The planned effort to present a unique image through newspapers, community events, and other visible
Alexus [3.1K]
Five is C four is C threes is B two is D one is C
6 0
3 years ago
Read 2 more answers
The goals scored per game by a soccer team represent the first quartile for all teams in a league. what can you conclude about t
nirvana33 [79]

Actually the quartile represents in what rank or order the team is when all the goals per team is arranged in ascending order. So for example since the team is on the first quartile, so this means it is on the 25% of the ranking. Hence we can say that:

“the team scored fewer goals per game than 75% of the teams in the league”

3 0
3 years ago
Which Of the following is the most important academic skill that you would need in a scientific career?
Svetlanka [38]

Research skills

(Time management is lower on the totem pole while the other 2 are on the bottom)

8 0
3 years ago
Read 2 more answers
etermine the degree of operating leverage for each approach at current sales levels. (Round answers to 2 decimal places, e.g. 2.
viktelen [127]

Answer: $1,376,000.

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this question effectively;

(1). The current approach and automated approach for Contribution Margin Ratio is 25 % and 50 % respectively.

(2). The current approach and automated approach for Break-even point in Sales Dollar is $ 1,248,000 and $ 1,312,000 respectively.

(3). The current approach and automated approach for Degree of Operating Leverage is 4.18 and 5 respectively.

(4). The current and automated approach for Decline in net income for a 10 % decline in sales is 41.8 % and 50 %.

(5). The current and automated approach for level of Sales where net income will be same under both options is $ 1,376,000 and $ 1,376,000 Respectively.

(6). The current approach and automated approach for Margin of Safety Ratio is 24% and 20% respectively.

Note that;

(1). BP = TFC / CMR

Where BP= Break-even point in sales dollar, TFC = Total Fixed Cost and CMR= Contribution Margin Ratio.

(2). MSR = ( ASD - BSD) / ASD × 100.

Where MSR= Margin of Safety Ratio,ASD=Actual Sales dollars, BSD= Break-even Sales dollars , and ASD = Actual Sales dollars.

(3). CMR = CM ÷ Sales × 100.

CMR = Contribution margin ratio, CM =Contribution Margin.

(4). DOL = CM ÷ NI.

Where DOL = Degree of Operating Leverage, CM = Contribution Margin and NI = Net Income.

Decline in net income for a 10 % decline in sales = OL x 10.

Where OL => Operating Leverage.

We then say that V = level of sales.

=> V x 25 % - 312,000 = V x 50 % - 656,000.

=> 0.25 V = 344,000.

V = $ 1,376,000.

4 0
3 years ago
Barney hendricks is interviewing web developers for his company. over lunch, he tells you that his top candidate showed lots of
anastassius [24]
Barney appears to be very impressed by the candidate's non-verbal communication skills.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Choose a well-known company that you are familiar with, and explain how that company could use each of the five P's of the marke
    10·2 answers
  • When a municipal dealer gives a customer a "bond appraisal," he is disclosing:_________.
    12·1 answer
  • When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit to
    6·1 answer
  • When going from a price of $160 per unit to a price of $140 per unit, what is the price elasticity of demand of GPS units?
    12·1 answer
  • Jolly Company wants to have​ 10% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the begi
    9·1 answer
  • When the price of ketchup rises by 15 percent, the demand for hot dogs falls by 1 percent. a. Calculate the cross-price elastici
    7·1 answer
  • Braden is in the 12% marginal tax bracket with a taxable income of $36,000 for the year. In addition, Braden has a $500 long-ter
    10·1 answer
  • Which of the following statements is correct? The journal entry to record bad debt expense requires a debit to bad debt expense
    7·1 answer
  • What is the most common goal of a trade agreement?
    10·1 answer
  • Statement: "We have permitted ourselves to be stampeded into a life of unnatural and dangerous high pressure. We pace
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!