Answer:
= 11.85%
Explanation:
After tax cost of debt = (1 - tax rate) x debt
(1 - 0.21) x 15%
0.79 x 15% = 11.85%
Answer:
A)Interest-rate effect
B)Real-balances effect
Explanation:
✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance
As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is
When the price level decreases, restaurants become busier as more people purchase restaurant meals.
Answer:
The second
Explanation:
Professional sales involves acts of convincing businesses or individual consumers to purchase your product or service. Merchandising relates to an attempt of getting products in the hands of customers and includes forecasting, planning, buying, displaying, selling and providing customer service. They are both part of Marketing, Sales and Services pathway.
APV and WACC are similar in that they reflect the tax benefit of leverage.
<h3>How to illustrate the information?</h3>
It should be noted that the adjusted present value (APV) is used to value a project.
The weighted cost of capital (WACC) implies the rate at which a company is expected to pay all its security holders in order to finance its assets.
In conclusion, APV and WACC are similar in that they reflect the tax benefit of leverage.
<u>Complete question:</u>
APV and WACC are similar in that they reflect the tax benefit of ...........
a. leverage
b. relocation
c. equity
d. waiting
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