Answer:
the net cost of debt to a firm is generally less than the cost of equity.
Explanation:
If we assume both, investor in firms and lender to firms want's a certain return x
because the lender return (the interest) are tax deductible the net cost of debt will be: x ( 1 - t)
where t is the tax rate being rate beteen 0 and 1
as 1 less a fraction will be less than 1 we can stablish that:
x > x(1 - t)
x is the cost of equity
while x(1-t) is the net cost of debt
therefore, the cost of debt is lower than cost of equity.
The gender divide because it’s not descriminatiob
<span>If other things are held constant, an increase in Unites States imports will make the dollar less valuable and other countries dollar will rise. There needs to be a balance between imports and exports for the United States to stay afloat. An influx of imports would make the United States reliant on foreign products and would raise the foreign countries value. This is why it is import for domestic products to sell and keep revenue inside the country.</span>
