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Kaylis [27]
4 years ago
14

Outstanding debt of Home Depot trades with a yield to maturity of ​%. The tax rate of Home Depot is . What is the effective cost

of debt of Home​ Depot?
Business
1 answer:
nydimaria [60]4 years ago
8 0

Answer:

5.6%

Explanation:

A lot of information is missing, so I looked for similar questions to fill in the blanks:

"Outstanding debt of Home Depot trades with a yield to maturity of 8%.

The tax rate of Home Depot is 30%.

What is the effective cost of debt of Home Depot?"

the effective cost of debt or after tax cost of debt = debt's yield to maturity x (1 - tax rate) = 8% x (1 - 30%) = 8% x 0.7 = 5.6%

Interest is tax deductible, therefore, it creates a tax shield that lowers net interest expense.

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What is dismissal in business?​
Oliga [24]

Answer:

A dismissal is when you end an employer's contract, with or without notice. Dismissal from work also occurs when an employee's fixed-term contract expires and you choose not to renew it. When should I dismiss someone?

8 0
4 years ago
Trust Machines Inc. is a company that manufactures and markets consumer electronics. The unique microprocessors developed by the
enyata [817]

Answer:

Difficult to Imitate (I)

Explanation:

The unique microprocessors developed by the company contribute to its high resource immobility. According to the resource-based view of competitive advantage, when a company is achieving resource immobility, it allows the company to create competitive advantage.

The theory of Resource-Based View is that if Trust Machines can create a company of people, processes and technologies that cannot be easily copied or imitated by competitors it means that your resources are diverse and immobile, and it can create competitive advantage.

3 0
3 years ago
Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0
3 years ago
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi p
alexgriva [62]

Answer:

Kokomochi

The incremental earnings associated with the advertising campaign in its first year is:

= $0.3 million.

Explanation:

a) Data and Calculations:

Advertising campaign cost = $5.5 million

                                                  Mini Mochi     Other Products   Total

                                                      Much

Incremental sales revenue        $8.2 million      1.8 million        $10 million

Incremental cost of goods sold   5.2 million      1.4 million           6.6 million

Incremental gross profit            $3.0 million      0.4 million          3.4 million

Advertising cost                                                                              3.1 million

Incremental earnings associated with the advertising campaign = $0.3 million

Advertising cost apportioned to:

This year = $8.2/$14.4 * $5.5 million = $3.1 million

Next year = $6.2/$14.4 * $5.5 million = $2.4 million

6 0
3 years ago
Suppose the civilian noninstitutionalized working age population is 35.9 million in Laborland, 4.6 million are working part time
frozen [14]

Answer:

The answers are:

A) 25.23 million people

B) 70.28%

C) 4.92 million people

D) 19.50%

Explanation:

Laborland's total labor force can be calculated by adding those who are employed and those who are unemployed but were searching for a job during the last month.

  • 4.6 million (part-time employed) + 15.71 million (full-time employed) + 3.2 million (looked for a job two weeks ago) + 1.72 million (looked for a job between two and four weeks ago) = 25.23 million people

Laborland's labor force participation rate can be calculated by dividing the labor force by the total population.

  • (25.23 million / 35.9 million) x 100% = 70.28%

Laborland's total unemployed can be calculated by adding the number of people without a job that searched for a job during the last month.

  • 3.2 million + 1.72 million = 4.92 million people

Laborland's unemployment rate can be calculated by dividing the total number of unemployed people by the total work force.

  • (4.92 million / 25.23 million) x 100% = 19.50%

6 0
4 years ago
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