Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08
Answer:
The answer is (C) Goals should specify the target dates or deadline dates when they are to be attained.
Explanation:
SMART goals state that targeted objectives should be Specific, Measurable, Attainable, Relevant, and Timely. Alex has developed goals that are specific, measurable, attainable, and relevant – yet he has not defined the time needed to accomplish these goals, including their due date. Thus, Alex should think of a realistic time schedule that he plans to implement in order to achieve his goals.
Revaluation is used to adjust the book value of a fixed asset to its current market value. ... If a revaluation results in a decrease in the carrying amount of a fixed asset, recognize the decrease in profit or loss
Answer:
Since half of his loss would be covered by insurance and he is not filing an insurance claim, he cannot take half of the loss.
For the half he can take, 4500, he must reduce it by 100 and then by 10% of his AGI. 4,500 - 100 - 5,000 = less than zero.
So he cannot deduct any of the loss.
Answer:
a. Fixed costs for businesses are the ones that don't depend on Q. Fixed costs= 20
b, thus. dC / dQ= d(20 + 2Q^2)/dQ= 4Q
c. Many companies say the economy competes perfectly. For such a scenario, the company is a price-taker and would demand the same $10 price as other firms on the market to sell its products.
d. Most companies expect a reasonably open market. Hence, MR= $10 in size.
Max profit: MC= MR, then 4Q= 10= > Q= 10/4= 2.5 Optimum production level to optimize profits= 2.5 units e. Profits= Sales-Expenses= price* Q-( 20+ 2Q^2)= 10* 2.5-20-2* (2.5)^2= 25-32.5 = -7.5 Profits are thus-$ 7.5 ($7.5 loss).
f. The organization will continue to survive in the short term because $7.5 losses are smaller than the $20 fixed expense. In other words, the company can pay more than its rising output expenses, and will thus continue to work in the short run.
