Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the least accurate of all of these statements would be " Because of technology, the number of persuasive messages has decreased." This is completely false because technology has not decreased the flow of information but instead drastically increased in, and this includes persuasive messages as well.
Answer:
9.90%
Explanation:
The appropriate approach is to include the amount expected to kept in non-interest bearing account as part of the loan
total loan=$400,000/0.95= 421,052.63
Interest charge = 421,052.63*9%*6/12=$18,947.37
interest rate percentage=$18,947.37/$400,000=4.74%
Effective annual rate=(1+4.74%
/6)^12-1 =9.90%
By dividing by 6, the interest is expressed in monthly terms
By raising to the power of 12 , it is expressed in yearly terms
Answer:
The value of the levered firm $31,125
Explanation:
Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.
EBIT $4,250.00
Less
Interest <u>$0.00 </u>
EBT $4,250.00
Tax 35% x 4250 <u>$1,487.50</u>
EAT <u>$2,762.50</u>
Cost of Capial 10%
Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625
Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500
Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125
Value of debt = $10,000
Value of levered Firm = $21,125 + $10,000 = $31,125
Q: A certain country taxes the first $20,000 of an individual'sincome at a rate of 15%, and all income over 20,000 is to be taxesat 20%. Find a piecewise-defined function T that specifies thetotal tax on an income of x dollars.
A: T(x) = {.15x if 0 {.20x- 1000 if x>20,000
Answer:
The correct answer is B
Explanation:
Financial frictions is the stickiness involve in making the transactions, aggregate process comprise of money, time, tax effects and time for gathering the information and make a transaction like borrowing money or purchase a stock.
So, if the policy rate is zero and stimulate the economy at the provided inflation rates, policymakers should lower or decrease the financial friction.