Answer:
The after-tax cost is $23,940
Explanation:
For computing the after-tax cost, first we have to compute the present value which is shown below:
Present value = Bill payment × marginal tax rate
= $38,000 × 37%
= $14,060
So, after tax value would equal to
= Bill payment or Pre tax value - Present value
= $38,000 - $14,060
= $23,940
Answer:
The answer is D. The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power
Explanation:
Substitution effect is a concept in which, as the price of a good or service increases, less of the good or service is substituted for other less expensive.
For example, if the price of Pepsi were to rise, the substitution effect would cause the consumer to buy less of it and substitute more coca-cola for now relatively more expensive Pepsi.
Option A. is wrong because we are talking about the quantity demanded and not just demand. (Please take note).
Answer:
Equity Beta = 1.1413
Explanation:
The formula to find the asset beta is
Asset Beta = Equity Beta/(1+(1-tax rate)(Debt/Equity))
We will put the values given in the question in this formula
Asset Beta = 0.8
Tax rate = 0.36
Debt = 0.40
Equity = 0.60
0.8=Equity Beta/(1+(0.64)(0.40/0.60)
0.8=Equity Beta/1+0.4266
0.8=Equity Beta/1.4266
1.4266*0.8= Equity Beta
Equity Beta = 1.1413
Answer:
A. reflects the enjoyment a consumer receives from consuming a particular set of goods and services
Explanation:
When modeling consumer behavior, utility reflects the enjoyment a consumer receives from consuming a particular set of goods and services
The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.
<h3>Low-cost / low-price advantage </h3>
It results in high profit only if;
- (1) prices are reduced by less than the size of the cost advantage or
- (2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.
Therefore, the greatest risk is a low profit.
learn more on low cost strategy from here: brainly.com/question/5516605