Answer:
7.28%
Explanation:
Coupon rate = 8%
Nper = 10 (25-15)
PMT = 80 (1000*8%)
FV = 1000
PV = 1050
Yield to maturity = Rate(Nper, pmt, -pv, fv)
Yield to maturity = Rate(10. 80, -1050, 1000)
Yield to maturity = 0.072789069
Yield to maturity = 7.28%
Thus, the pretax cost of debt is 7.28%.
Answer:
The correct answer is option A.
Explanation:
A production possibility curve shows the maximum possible combination of two goods that can be produced using all the available resources and state of technology.
An increase in economic growth causes the production possibility curve to shift to the right. The faster the economic growth the more the economy will be able to produce. So the farther the production possibilities curve will shift out.
Answer:
B. who can immediately take over the family business
Explanation:
<em>Option A</em> is wrong because opportunity cost is not related to intelligence.
<em>Option C</em> is not correct because a high school graduate and a college attending student can access to student loans.
The family's wealth can not be a factor in terms of opportunity cost of attending college or a high school graduate. Therefore, <em>option D</em> is incorrect.
Option B is correct as a college attending student cannot take over the family business. So, it is his opportunity cost. On the other hand, a high school graduate can take over the business.
Answer: The answer is Yes. This is because you have a choice to accept or decline.