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3 years ago

Theâ€‹ after-tax cost of debt is higher than theâ€‹ before-tax cost of debt. True or False

Business

1 answer:

olasank [31]3 years ago

5 0

Answer:

False

Explanation:

The after cost of debt is always lower than the before tax cost of debt. For example, a company borrows $1,000,000 and pays 7% interest per year. This results in $70,000 in interest expense before taxes = $1,000,000 x 7% = $70,000.

The after tax cost of the debt = $1,000,000 x 7% x (1 - tax rate) = $1,000,000 x 7% x (1 - 21%) = $1,000,000 x 7% x 0.79 = $55,300

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Mi familia y yo fuimo al cine y noscoperamo papra la entrada que fue $245 si mi hermana dio 1/5 del total mientras yo di 4/10 y

Blizzard [7]

Answer: (55 x 30) + 245 = 1895

Explanation:

translation from spanish to english: My family and I went to the movies and we collected for the entrance that was $ 245 if my sister gave 1/5 of the total while I gave 4/10 and my father gave the rest how much money each one contributed.

Spanish:

la parte superior es la respuesta, espero que esté bien.

english:

the top is the answer, hope it was right.

7 0

3 years ago

Consider this problem: Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil an

astraxan [27]

Answer:

The maximum time guaranteed = 19.04 minutes.

Explanation:

From the given problem data, we have:

Let Y be the random variable which follows the normal distribution.

So,

Y ~ N(u = 15, SD = 2.4

Where, u = mean and SD = Standard Deviation

Let the maximum time guaranteed is = M

So,

P (Y > M) = 0.05 equation 1

Convert this equation 1 into standard normal variable, that is,

P(Y> M) = 0.05

1 - P(Y $\leq$ M) = 0.05

P(Y $\leq$ M) = 1 - 0.05

P(Y $\leq$ M) = 0.95

P $(\frac{Y-u}{SD} \leq \frac{M-u}{SD} )$ = 0.95

P ( Z $\leq \frac{M - 15}{2.4}$ ) = 0.95 Equation 2

From the equation 2, we have,

$\frac{M-15}{2.4}$ = 1.644853627

1.644853627 value is from using the function of Excel

( =NORSINV(0.95)) = 1.644853627

So,

M = 1.644853627 + 2.4 + 15

M = 19.04

Hence, the maximum time guaranteed = 19.04 minutes.

6 0

3 years ago

Carper Company is considering a capital investment of $390,000 in additional productive facilities. The new machinery is expecte

VARVARA [1.3K]

Answer:

(1) Payback period is 4.588 years or 4 years and 215 days

(2) 5.13%

Explanation:

(1)

Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.

Payback period = Initial Investment / Annual net cash flow

Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days

(2)

As per given data

Net Income = $20,000

Initial Investment = $390,000

Annual rate of return is the ration of net income to the investment made in the project.

Annual rate of return = Annual net Income / Initial Investment

Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%

8 0

3 years ago

Read 2 more answers

Country A would have an absolute advantage compared to Country B in the production of corn if

viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others. A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.

6 0

3 years ago

A progressive tax is such that

Nastasia [14]

Answer:

1. True. The tax rates are higher, the greater one's income

Explanation:

1. True. Progressive tax is defined as a tax whose rate increases as the payer's disposable income increases. The implication is that ,individuals who earn high incomes have a greater proportion of their incomes taken to pay tax.

A perfect example of progressive tax is income tax whose rate is tied directly to personal income income.

2. False. The rate increases as the disposable income of the tax payer increases under progressive tax

3.False. Entrepreneurial income will be taxed after adjusting for allowobale and non-allowable income and expenses and relevant loss relief.

4. False. The revenue realised from progressive taxes are utilized by the government as stipulated in the budget.

7 0

3 years ago