Answer:
after-tax cost odf debt 0.035 = 3.5%
Explanation:
the debt provides a tax shield for companies, as the interest expense, decrease the net income. Interest decrease income and therefore, the tax income associate with the income.
So the cost of debt with taxes is lower, because it lower the income tax expense
<u>the formula will be:</u>
cost of debt ( 1 - tax-rate)
<u>in this case:</u>
0.05 ( 1 - 0.3) = 0.05 x 0.7 = 0.035
Answer: Charismatic leader
Explanation: Charismatic leaders are those leaders which gain authority due to their charisma and not on legal or traditional basis. These kinds of leaders generally inherits very effective communication skills and can persuade others due to their confidence and strict believes in morals.
Mahatma Gandhi is an example of charismatic leader.
Answer:
revenue recognition principle
Explanation:
is this what you are looking for?
High interest rate and long time period. I believe
Eugene should not be upset because HIS PROPERTY VALUE HAS INCREASE. Sale tax refers to the consumption tax imposed by the government on the sales of goods and services at the point of sale. An increase in sale tax will automatically increase the value of the land and the house that Eugene has in that area. If he sells the land later or rent out the house, he will make more money from the sale.