Answer:
Pretax cost of debt is 8.58%
after tax cost of debt is 5.15%
After tax cost of debt of 5.15% is more relevant because that reflects the true cost of debt bearing in mind that debt has a tax advantage(tax shield).
Explanation:
The pretax cost of debt can be computed using the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond would pay i.e 25years(years to maturity)*2=50
pmt is the semiannual coupon interest=$1000*7.8%*6/12=$39
pv is the present price of the bond=$1000*92%=$920
fv is the face value of $1000
=rate(50,39,-920,1000)=4.29%
Annual yield=4.29%*2=8.58%
after tax cost of debt=pretax cost of debt*(1-t)
t is the tax rate of 40%
after tax cost of debt=8.58%*(1-0.4)=5.15%
Answer: $1,850 billion
Explanation:
The following were given in the question:
Currency in circulation = $950 billion
Required reserves = $60 billion
Excess reserves = $840 billion
Open market operations = $70 billion
The monetary base will be the value of all the currency in circulation plus the reserves that is held by the banks and this will be:
= $950billion + $60billion + $840billion
= $1,850 billion
Answer:
$23.45 per unit
Explanation:
Given that,
Units produced = 9,000 units
Direct labor = $7.25 per unit
Direct material = $8.00 per unit
Variable overhead = $5.50 per unit
Total production cost = $28.25 per unit
Fixed overhead:
= $67,500 ÷ 25,000 units
= $2.70 per unit
Total product cost per unit:
= Direct material cost per unit + Direct labor cost per unit + Variable overhead cost per unit + Fixed overhead
= $8.00 per unit + $7.25 per unit + $5.50 per unit + $2.70 per unit
= $23.45 per unit
Answer: "Make the person whole"
Explanation:Compensatory damages are paid or awarded to plaintiffs in civil cases where a person,group of persons or Organisations have caused some damages to the plaintiff due to their negligence and illegal conducts.
Compensatory damages can be asked in court by an attorney representing the plaintiff once adequate evidence has been established and can be proven in the law courts. When Compensatory damages are paid they make the affected person, group of people or Organisation to "whole" again.
Answer: The answer is benefits of international trade
Explanation:
In the question, no specific question was asked. But I think the question is about the benefits of international trade.
International trade is a trade between one country and the other.it can also be said to be the buying and selling of goods and services across national boundaries. The following are the benefits of international trade
A higher level of material well being : international trade leads to increased standard of living among nations of the world. In the sense that, it increases output and the opportunity to acquire goods that we would otherwise have been unable to produce ourselves, it would lead to increase in national income which will in turn lead to increased in investment which will enhance the welfare of all citizens
Reducing the threat of war: international trade bring about a better understanding among nations of the world. It promotes international friendship and world peace.
Deterring monopoly : international trade helps in preventing monopoly by ensuring that goods comes from other countries of the world.
Promoting competition : international trade helps in promoting competition among nations of the world. In the sense that,countries compete for trade in order to increase their own volume of the world trade as a measure to avoid balance of payment deficit.
Gains from specialization : international trade help countries to specialize in commodities which they can best produced. It leads to increased output and employment throughout the world from which every nation can benefit.
A more efficient allocation of resources : international trade help countries to allocate their resources efficiently. In the sense that, each country will specialize in the production of those commodities in which the country has comparative cost advantage over other countries by directing their resources to those areas of comparative lower cost, world output will be increased.