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n200080 [17]
3 years ago
9

Ladder Works has debt outstanding with a coupon rate of 6 percent and a yield to maturity of 6.8 percent. What is the aftertax c

ost of debt if the tax rate is 21 percent
Business
1 answer:
damaskus [11]3 years ago
8 0

Answer:

5.372%

Explanation:

Given that

Coupon rate = 6 percent

Yield to maturity = 6.8%

Tax rate = 21 percent

So by considering the above information, the after tax cost of debt is

= Yield to maturity × (1 - tax rate)

= 6.8% × (1 - 0.21)

= 5.372%

We simple multiply the yield to maturity with the after tax rate so that the approximate cost of debt could come

Ignored the coupon rate as it is not relevant for the above computation

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What is necessary for someone to even get the oppurtunity to accumulate 10,000 hours of practice at something?
GenaCL600 [577]

Answer:

<em>10 hours per week in 20 years, 20 hours per week in 10 years or 40 hours per week in 5 years.</em>

Explanation:

According to the author Malcolm Gladwel, with his book “Outliers. The success story ”, says that to achieve excellence, you must have an accumulation of 10,000 hours of practice, this means 10 hours per week in 20 years, 20 hours per week in 10 years or 40 hours per week in 5 years.

The author analyzes the importance of culture, family, friends, ancestors and other determining factors in the success of his projects.

Gladwell cites Mozart's example, recognized as a great genius. A composer began at age 7 and it is true that we know that some good pieces were written at the time of his adolescence. But the great symphonies were written after the age of 21, when he had already accumulated more than 10,000 hours of practice, in compositions and interpretations.

From this idea of ​​10,000 hours of practice, a level of knowledge acquired is possible based on a scale of magnitude of 10 hours, in an approximate way:

With 1 hour: We can know the basics.

With 10 hours: We have a broader notion of the basics.

With 100 hours: A medium level is acquired.

With 1,000 hours: It advances to be a specialist.

With 10,000 hours: One can master complications in that skill.

4 0
3 years ago
Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen
Fudgin [204]

Answer:

  • The richest quintile has the ability to save a larger percentage of its income.
  • Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

7 0
3 years ago
Suppose your grandma sends you $100 for your birthday and you deposit $100 into your checking account at the local bank. The res
muminat

Answer:

$90; $900

Explanation:

Given that,

Amount of deposits = $100

Required reserve ratio = 10%

Required reserves:

= Amount of deposits × Required reserve ratio

= $100 × 10%

= $10

Excess reserves = Deposits - Required reserves

                           = $100 - $10

                           = $90

Money multiplier:

= 1/ Required reserve ratio

= 1/ 0.1

= 10

Money Supply:

= Amount of excess reserves used for lending × Money multiplier

= $90 × 10

= $900

The money supply could eventually grow by as much as $900.

3 0
3 years ago
An ideal prospect for a universal life insurance policy is someone who foresees a possible future need to adjust the amount of t
pshichka [43]

Answer:

The correct answer is 4

Explanation:

Universal life insurance is the insurance which is an element of the investment savings and the low premiums such as the term life insurance. These policies have a option of the flexible premium and however, some of the policies require fixed premiums or the single premium.

So, the ideal prospect of the policy states that the premium payments are deposited into the General account of the life insurance company not in the separate account. These policy control the investment not the policyholders.  

4 0
3 years ago
In the new global economy, an increasing proportion of influential financial decisions are being made in
ololo11 [35]

An increasing proportion of influential financial decisions are being made in Major corporate centers such as New York, London, and Tokyo in

new global economy.

<h3>What is global economy?</h3>

The global economy serves as the economy of all humans of the world, which is the global economic system.

And this includes all economic activities which are conducted both within and between nations.

Learn more about economy at;

brainly.com/question/13628349

7 0
2 years ago
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