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
All the payroll information needed to prepare payroll and tax reports is found on
Kruka [31]

Answer:

c

Explanation:

7 0
3 years ago
Leasing a car may be a better option than buying a car
AfilCa [17]
If you do t plan on having it for a long time, then you don’t have to worry about the maintenance issues and upkeep.
5 0
2 years ago
Read 2 more answers
Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, a
Lena [83]

Answer and Explanation:

The computation is shown below:

a. For the maximum amount that spend each month on mortgage payment is

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 28%

= $924

b. . For the maximum amount that spend each month on total credit obligatons

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 36%

= $1,188

c. Now the maximum amount spend for all other debt is

For monthly mortgage

= $924 × 70%

= $646.8

And, for mortgage debt

= $1,188 × 70%

= $831.60

4 0
3 years ago
17. What positive outcomes are associated with<br> saving money and why?
vekshin1

Answer:

Positive out comes in saving money is helping u make an investment in what ur passionate in.

Explanation: like say u want to buy or invest into a career by saving ur money you can get to that point and that is basically a positive outcome for you and the money you have saved.

hope this was a valid answer

6 0
3 years ago
Read 2 more answers
You have purchased a machine costing $30000. The machine will be used for 2 years, and at the end of this time, its salvage valu
Harlamova29_29 [7]

Answer:

$2.07

Explanation:

the complete answer details is found in the attachment below

5 0
2 years ago
Other questions:
  • Lloyd is chronically-ill and received tax-qualified long-term care insurance benefits in 2018 amounting to $8,000 to cover a 30-
    11·1 answer
  • Peter was hired as an external consultant to review the streamlining of production processes at a company. In his final report,
    15·1 answer
  • The _____ value of stock is an amount assigned per share by the corporation in its charter. In many states, this amount establis
    11·1 answer
  • " The high cost of implementing changes to infrastructure always raises questions about priorities. Should investments in infras
    12·1 answer
  • "Have you considered paying workers for what they produce? I found that when i paid employees by the pice, their productivity we
    6·1 answer
  • Which situation best illustrates the role of businesses in the circular flow of<br> goods?
    15·2 answers
  • In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Which of
    11·1 answer
  • Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, sh
    6·1 answer
  • Which of the following can result from inflation in the United States?
    5·1 answer
  • sabrina company recorded an adjusting entry for salaries owed to employees at the end of the year. as a result of this entry, sa
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!