Well because a retrospective or ex post facto study offers a higher level of control than a correctional study!!
Answer:
$90,000
Explanation:
We are assuming that the $210,000 paid for 70% of Pumpkin Corporation represents a fair value for their stock. The non-controlling interest is 30% of the company's stocks and we can use the value paid to determine the value of the non-controlling interest.
Non-controlling interest = ($210,000 / 70) * 30 = $90,000
Answer:
1: Maria Sharapova
2:Zoya Berber
3:Anfisa Chekhov's
4:Ekaterina Klimova
5:Anastasiya Zadorozhnaya
6:Anna Vladimirovna Shurochkina
7:Evgenia Chirikova
8:Kristina Asmus
9:Lera Kudryavtsevas
10:Alina Artz
The after-tax cost of debt is 6.28%. Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.
<h3>What is After-tax cost?</h3>
- After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
- WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
- WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).
Therefore,
The after-tax cost of debt is 6.28%.
FV = -$1,000
PMT = -$100
N = 20 years
PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.
Compute I/Y = 9.511%
After-tax cost of debt = 9.511%×(1-.34) = 6.28%
To learn more about After-tax cost, refer to:
brainly.com/question/25790997
#SPJ4
