Answer:
After tax cost of debt is 5.239%
Explanation:
Given:
Face value = $1,000
Bond price = $895
Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)
Maturity = 20×2 = 40 periods
Using bond price formula:
Bond price = Present value of face value + present value of coupon payments
Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.
substituting the values:
=RATE(40,35,-895,1000)
we get Pre-Tax cost of debt = 4.03% semi- annual
Annual rate is 4.03%×2 = 8.06%
Note: PV is negative as bond price is cash outflow.
After tax cost of debt = 8.06(1 - 0.35)
= 5.239%
Answer:
Selling price= $172.8
Explanation:
Giving the following information:
Manufacturing costs to be $ 240.00 per air conditioner
Consisting of 60% variable costs and 40% fixed costs.
Selling price= 20% markup to full costs.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs:
Unitary cost= 240*0.6= $144
Selling price= 144*1.2= $172.8
In the given scenario, Rembrandt Cosmetics accomplished its substitution primarily through strategic planning of equivalence.
<h3>What is strategic planning?</h3>
When the differences between two different strategic plans are identical, with other things being constant, such a situation is called as a strategic planning of equivalence.
Hence, strategic planning holds true regarding the given situation.
Learn more about strategic planning here:
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<span>The function of media advertising is to support the economy, provide information about products, and underwrite media costs associated with: Promotion of consumption
By using media advertising, a company will be able to obtain larger reach to inform potential customers about the existence of their product, which will persuade the potential buyers to spend their saving to consume their products.</span>
Answer:
Click through rate
Explanation:
Click-through rate (CTR) are used to measure many of the decisions that go into a campaign, such as keyword selection and ad copy because the numbers of users who click on the advert link to the number of all total users who has either view the page of the advertisement and It is used to measure the success of an online advertising campaign for a website as well as how effective email campaigns are, by measuring or evaluating the numbers of people who actually saw the advert and click on the link of the advert that is why click through rate do not measure the performance of an advert campaign but rather useful to evaluate many of the decisions that go into a campaign.
Therefore the higher the click-through rate of an advert the more successful the advert has been in generating interest.
