Answer:
T
Explanation:
I personally feel like I is important. Because now your informed to get on time.
Answer:
$400000 is the correct answer
Answer:
the after-tax cost of debt is 13.24
Explanation:
The after-tax cost of debt is the initial cost of debt as a result of the incremental income tax rate.
The after-tax cost of debt is dependent on the incremental tax rate of a business. If profits are low, a business would pay low tax rate, which means that the after-tax cost of debt will increase. Also, if the business profits increase, they would pay higher tax rate, so its after-tax cost of debt will decline.
Given that:
Required return (r) = 11.50% = 0.0115
The yield on a 20-year treasury bond (y) = 5.50% = 0.055
beta (b) = 1.29
rs = y + (r -y) x b
after-tax cost of debt = 5.50% + (11.50% - 5.50%) x 1.29
after-tax cost of debt = 13.24%
On average, someone with a Bachelor's degree is estimated to
earn 84% more than someone with a high school diploma.
According to the analytics of National Center for Education
Statistics (NCES), those who have college degrees can earn significantly more
compared to those with only high school diploma.