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:
A) True
Explanation:
A corporation is a distinct and separate legal entity from its owners. It enjoys commercials' rights and has obligations, just like a person does. Corporations transact business, can enter a contract, borrow money, sue, or be sued.
The most salient feature of a corporation is that its owners have limited liability. It means that the owners of a corporation are liable for its obligation up to the extent of their capital contribution. If a corporation is unable to meet its debts, the personal properties of its owners can not be attached to the liabilities.
Many corporations outlive their founders. The most famous companies were incorporated decades ago. A corporation is often described as a legal person. Its lifespan is not dependent on the lives of its owners.
Answer:
Since a perfectly competitive firm must accept the price for its output as determined by the product’s market demand and supply, it cannot choose the price it charges. Rather, the perfectly competitive firm can choose to sell any quantity of output at exactly the same price. This implies that the firm faces a perfectly elastic demand curve for its product: buyers are willing to buy any number of units of output from the firm at the market price. When the perfectly competitive firm chooses what quantity to produce, then this quantity—along with the prices prevailing in the market for output and inputs—will determine the firm’s total revenue, total costs, and ultimately, level of profits.
Coca Cola follows a price discrimination strategy in its marketing mix and the target market is younger customers within the age bracket of 10-25.
<h3>What is Marketing mix?</h3>
These are set of marketing tools that the firm uses to pursue its marketing objectives in the target market.
Coca Cola follows a price discrimination strategy in its marketing mix means that they charge different prices for their products and its target market are young customers.
Read more about Marketing mix here brainly.com/question/859394
Answer:
A. outsourcing allows the company to focus on its primary function
Explanation:
- The companies outsource to cut the labor costs and these include the salaries and the personal overheads and primarily used by these companies to focus on the core aspects of business.
- To delegate the company's business to third parties and to the external agencies and improve the quality production and innovation.
