Answer:
a.) increased the after-tax cost of debt
Explanation:
Missing options are:
a.) increased the after-tax cost of debt
b.) did not change the after-tax cost of debt
c.) increased the value of the deduction for interest expense
d.) decreased the after-tax cost of debt
The after tax cost of debt is calculated by multiplying the debt's principal x interest rate x (1 - tax rate). If the tax rate decreases, the after tax cost of debt increases. e.g.
$1,000 owed at 6%, when tax rate was 40% ⇒ after tax cost of debt = $1,000 x 6% x (1 - 40%) = $36 or 3.6%
now, $1,000 owed at 6%, when tax rate is 21% ⇒ after tax cost of debt = $1,000 x 6% x (1 - 21%) = $47.40 or 4.74%
Answer: Disintermediation
Explanation:
Disintermediation is the withdrawal of funds from an intermediary financial institutions e.g savings and loan associations or banks in order to invest them directly. It is the reduction in using intermediaries between the producers and consumers.
From the question, Erudite stopped using an intermediary and started selling its books online. The main advantage of disintermediation is that the consumer saves money.
Entry to record the purchase will include <u>a debit to supplies and a credit to accounts payable</u>.
Accounts payable (AP) are amounts because of companies or providers for goods or services acquired that have not been paid for. The sum of all tremendous amounts owed to providers is shown as the money owed payable stability at the enterprise's stability sheet.
A debit will increase asset or fee debts and decreases legal responsibility, sales, or fairness debts. A credit is continually located at the proper aspect of access. It increases legal responsibility, revenue, or equity money owed and reduces asset or cost money owed.
Purchasing is the buying of goods or offerings. An item that has been bought is known as a purchase. the opposite of a purchase is a sale. In not unusual usage, the shorter word "purchase" is usually used whilst buying, instead of the phrase "buy".
Learn more about assets here brainly.com/question/25746199
#SPJ4
