It defines the purpose. It serves as a guideline for decision-making. It could also attract support and donations.
Answer:
D. Cost of debt (rd)
Since more debt is taken, the interests payments or cost of debt should increase.
E. Cost of equity (rs)
More leverage = higher risk, and higher risk = higher cost of equity.
Explanation:
Return on assets will probably decrease, because the assets should remain the same but net income should decrease.
Net income will probably decrease because the company will now pay more interests due to higher debt.
Basic earning power should remain unaffected, because EBIT and assets should not change.
$0.05m + $50>55
0.05 per minute plus $50 per month for the plan less than $55
Answer:
not taxed
Explanation:
original issue discount which are new issue municipal bonds do not have their interest income taxed at the federal level by the IRS. An investor that purchases the municipal bond from the secondary market however would be accreted and have his income from the bond treated as ordinary income and would be taxed. But interest from original issue discount bonds are not taxed and are also not taxed when held to maturity
Answer:
Distinguish among different types of financial institutions.
Explanation: