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3 years ago

A higher marginal income tax rate reduces incentives to work because

1 answer:

7 0

<span>An increase in the marginal income tax rate is likely to decrease the quantity of labor supplied. because the increase in the tax automatically reduces the profit of the firm. the management will always try to compensate their loss by taking necessary reforms or measures. the first and simplest method to reduce the loss is to cut down the expense by reducing the labour involved.</span>

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Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th

Nina [5.8K]

Answer:

5.925%

Explanation:

For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment

Given that,

Present value = $1,050

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% = $80

NPER = 20 year - 1 year = 19 year

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is 7.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.50% × ( 1 - 0.21)

= 5.925%

3 0

2 years ago

What year began the worst economic recession since the great depression?.

Kamila [148]

2007 to the year of 2009

4 0

1 year ago

Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of ber

Firlakuza [10]

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

7 0

2 years ago

A(n) _____ is something a person wants to get out of a job or that brings them job satisfaction. a. personal value b. work value

vampirchik [111]

Answer:

It would most likely be be D. Interest

7 0

2 years ago

Cominsky Company purchased a machine on July 1, 2021, for $28,000. Cominsky paid $200 in title fees and county property tax of $

sammy [17]

Answer:

Deprecation base=$26,300

Explanation:

Given Data:

Cost of machine=$28,000

Tax=$125

Fees=$200

Shipping charges=$500

Paid to contractor to build and wire a platform for the machine=$475

Salvage value=$3000

Useful life = 6 years

Required:

Depreciation base of Cominsky's new machine=?

Solution:

Deprecation base=Acquisition Cost-Salvage Value

Acquisition Cost:

It is the cost which involves the buying of asset and making the asset to work. In our case:

Acquisition Cost=Cost of machine+Tax+Fees+Shipping charges+Paid to contractor to build and wire a platform for the machine

Acquisition Cost=$28,000+$125+$200+$500+$475

Acquisition Cost=$29300

Deprecation base=Acquisition Cost-Salvage Value

Deprecation base=$29300-$3000

Deprecation base=$26,300

5 0

2 years ago