Answer:
8% and 4.8%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $1,294.54
Future value or Face value = $1,000
PMT = 1,000 × 11% = $110
NPER = 20 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 8%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8% × ( 1 - 0.40)
= 4.8%
Answer:
d. segmentation
Explanation:
Segmentation is when a firm divides its customers or potential customers into groups based on certain traits.
Types of segmentation includes:
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Geographic segmentation
The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).
<h3>Real interest rate </h3>
A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.
Learn more about real interest rate here:
brainly.com/question/13324776
#SPJ4
Answer:
The correct answer is $57.
Explanation:
According to the scenario, the computation of the given data are as follows:
Dividend = $11.40
Growth rate = -0.05
Required rate of return = 0.14
So, we can calculate the price by using following formula:
Price = Dividend × ( 1 + Growth rate) ÷ ( return rate - growth rate)
By putting the value, we get
= $11.4 × ( 1 - 0.05) ÷ ( 0.14 + 0.05)
= $57
