Answer:
explains how a firm's WACC increases with the use of financial leverage.
Explanation:
According to the MM Proposition II with taxes, the cost of equity rises with the increases use of debt in the capital structure of a firm.
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As cost of equity increases, the firm's WACC increases also
The MM Proposition I with taxes reveals how utilizing the tax shield on debt causes an increase in the value of a firm
8,400 is your answer all you have to do is add the 4 sales and subtract the discounts and the returns
Answer
Hi,
Progressive tax assesses a taxpayer’s ability to pay. Higher rates are on the wealthy than on the poor.
Explanation
Those considered poor according to a country’s definition have families who spend larger shares of their income on the cost of living thus all money they earn is needed to afford basic needs thus face a decreased progressive tax. On the other hand, the progressive tax imposed on wealthy individuals decrease their abilities to purchase more luxury items or invest in stock.
Hope this helps!
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