Answer:
B: Increasing use of social media
Explanation:
Social media has many effects, good and bad on our society. Now people know what happened 4 minutes ago in countries thousands of miles away. They can keep up with celebrities and more. You can see how this is drastically changing the way we live. Hope this helps!
Answer:
Explanation:
a) since MR=MC, then 15-2Q=3+Q. So, the monopolist produce Q=4
price P=15-Q=10-4=6
profit=6*3-TC=18-(3+4+0.5*4^2)=3
b)since the P=6=6, domestic production will stay the same. The domestic consumption will stay the same. For Wilknam, it will import soccer balls.
c)yes, it holds that Wiknam will be an importer. Because the price for domestic production is 6 which is same as the world price 6.
d)Since the price within country is the same with price out of country, and also, MC=3+Q=7>6, Wiknam will import soccer balls. The monopolist market will become a competitive market.Even though the price won't change,the product will be of high quality and so on. The market will become more equilibrium.
The correct answer for the question that is being presented above is this one: "B. A pawn shop has lower interest rates than banks." The statement about a pawn shop that is correct is this one: <span>B. A pawn shop has lower interest rates than banks.</span>
Answer:
a) Pre-tax cost of debt is 8.45%
b) After tax cost of debt is 5.07%
Explanation:
a) Given:
Debt issue outstanding = $15.5 million
Semi-annual coupon rate = 0.063 / 2 = 0.0315
Assumed par value (FV) = $1,000
Coupon payment (pmt) = 0.0315 × 1000 = $31.5
Current bond price (PV) = 92% of $1,000 = $920
Time period (nper) = 5 × 2 = 10 periods
Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)
Semi-annual rate = 4.14%
Pmt and FV are negative as they are cash outflows.
YTM = 4.14 × 2 = 8.28%
Effective annual rate = 
= 
= 0.0845 or 8.45%
b) Tax rate is 40%
After tax cost of debt = Pre tax cost of debt × (1 - 0.4)
= 0.0845 × 0.6
= 0.0507 or 5.07%
