1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kvv77 [185]
3 years ago
13

A local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rat

e is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?
Business
1 answer:
Over [174]3 years ago
8 0

Answer:

local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?

Explanation:

You might be interested in
The actual interest rate on a loan that is compounded monthly but expressed as an annual rate is referred to as the _____ rate.
Brrunno [24]

annual percentage rate

The effective tax rate of return from an investment for a year, taking into account compound interest, is known as the annual percentage yield (APY). The amount that lenders charge borrowers as a proportion of the principle is called the interest rate. Additionally, it is the sum derived from deposit accounts.

The annual interest produced by an amount that is paid to investors or levied to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the real annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or other expenditures related to the transaction.

To know more about annual percentage rate refer to brainly.com/question/26037117

#SPJ4

3 0
2 years ago
What is allowable self-employment plan contributions.
matrenka [14]
<h3><em>Answer:</em></h3><h3><em>Answer:For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $61,000 for 2022 ($58,000 for 2021; $57,000 for 2020). You can calculate your plan contributions using the tables and worksheets in Publication 560</em></h3>
4 0
3 years ago
WILL GIVE BRAINLIEST !!!! NEED ASAP
RUDIKE [14]

Answer:

A.

Explanation:

7 0
3 years ago
Read 2 more answers
The daily demand for parts from a machining workcell JMB to an assembly workcell is 1,600 units. The average processing time is
Karolina [17]

Answer:

Daily demand for parts = 1600 units

Avg processing time = 25 seconds.

Capacity of a container = 250 units

Waiting time of a container before the JMB = 6 hours

Number of containters currently deployed = 10

Solution:

Total number of parts carried by the containter = 10 x 250 = 2500 parts.

Total numbers carried in excess as safety stock = 2500-1600 = 900

Percentage of safety stock = (900/1600) x 100 = 56.25%

If one container is removed total parts carried = 2250 units

Processing time at machine for 250 parts after loading in JMB = 250 x 25 seconds = 1.736 hours, but it has to wait for another 4.26 hours for the next container to be loaded because of the waiting time of the containter is 6 hours.

Processing time at machine for 1600 parts = 1600 x 25 seconds = 11.11 hours

Number of containers required for 1600 parts = 1600/250= 6.4 ~ 7 containters

Waiting time of 7 containers = 7 x 4.26 = 29.82 hours.

If one of the containers has to be removed 1600 parts has to be carried in 6 containers ie., 29.82hours - 6 hours = 23.82hours

Waiting time per container before loading = 23.82/6 = 3.97 hours.

Reduced Total waiting time of the container = 3.97 hours + the processing time of 250 parts = 3.97 + 1.736 =5.7hours ~ 5 hours and 42 minutes

4 0
4 years ago
Labels Plus, LLC, exports specialty printing equipment for the labeling, flexible packaging, and carton industry. Due to increas
Kisachek [45]
Label Plus, LLC, ......................... Due to increased support from DEPARTMENT OF COMMERCE'S BUREAU OF INDUSTRY AND SECURITY.
The department of commerce's bureau of industry and security helps small businesses by supplying them with information which can help their business to succeed on the international scale.
6 0
4 years ago
Other questions:
  • Prepare journal entries to record the following four separate issuances of stock.
    11·1 answer
  • The Anderson family wants to look at their cash flow over a year. They decide to write out their cash flow for 4 months as given
    5·2 answers
  • You want to buy a $300,000 home. You have $30,000 as a down payment. Therefore, buying the house will require you to take out a
    8·1 answer
  • Match the descriptions to economic and non-economic factors that affect a business cycle.
    12·2 answers
  • For the cash flow series below, calculate the external rate of return, using the return on invested capital approach with an inv
    15·1 answer
  • How can expansionary and contractionary tax policies be used to manage the economy? Be sure to give your answer in two to three
    7·2 answers
  • Wangerin Corporation applies overhead to products based on machine-hours. The denominator level of activity is 7,000 machine-hou
    8·1 answer
  • A telephone company is considering building a new automated switching distribution substation with a useful life of 20 years to
    11·1 answer
  • What is best state foe real estate
    10·1 answer
  • 1988
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!