Answer:
Pretax = 5.61%
After tax = 4.26%
Explanation:
The cost of debt will be the Yield to maturity of the bonds.
91 = present values of the 25 year annuity + present value of the maturity
There is no formula for exact YTM
we can either use excel or calculate by approximation:
In this case we will calcualte the YTM by aprroximation
C= 25 cuopon payment 1,000 x 5% / 2 becayse paymenr are semiannually
F= 1000 the face value is 1,000
P= 910 the present value or market value is 91% of the face value
n= 50 25 year at 2 payment per year
dividend 26.8
divisor 955
YTM 5.6125654%
This will be the pretax cost of debt
then we calculate the after tax cost of debt
pre-tax cost of debt ( 1 - t ) = after-tax
5.61% ( 1 - .24 ) = 4,2636
The answer is not C it is actually D. from P1 to P2 the demand curve is shifting outwards, therefore creating an increase in demand
Answer:
True
Explanation:
If lean production totally eliminates inventories, the net operating income computed under the absorption and variable costing methods should be equal. If lean production only reduces inventories, then the difference in net operating income under the two methods will be reduced.
Lean production is a system of production that tries to eliminate bottlenecks in the flow of goods by employing tools like just in time (JIT), Kaizen, and the 5S of Sort, Set in Order, Shine, Standardize, and Sustain, among others. It attempts to cut costs, reduce unnecessary inventory, shorten production cycle, speed response time, grant employees autonomy, and reduce waste of resources while ensuring high quality and customer satisfaction.
Lean production employs some principles in order to achieve efficiency. They are: 1) definition of value, 2) mapping the value stream, 3) creating efficient flow, 4) using a pull system, and 5) pursuing perfection in all aspect of production activities. The Lean approach can be applied to services and other aspect of business, like system, structure, and organization.
Answer:
A
Explanation:
While dealing with a DOG situation, it is best to disinvest in the product and focus on other products with greater market potential
