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Kaylis [27]
3 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]3 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.

You might be interested in
It is generally agreed internationally that the one thing that can most readily undermine equity, efficiency and integrity in th
KiRa [710]

Answer:

Bribery

Explanation:

Bribery is an act of influencing someone's behavior to obtain an undue advantage through giving or receiving unearned rewards .It can be in the form of gifts , money , preferred treatment , and other form of favor , but what actually defines a bribe is the intention behind the gifts.

It  has a lot of negative effects either directly or indirectly on the public as it undermines equity , efficiency , integrity in the public service , undercut public confidence in markets , adds to transaction cost and effects the safety and well being of the general public .

3 0
3 years ago
Consumers in which stage of the household life cycle are over 64 years of age; are either fully or partially retired; are health
scoray [572]

Options: A. Single 1

B. Single II

C. Empty nest I

D. Empty nest II

E. Delayed empty nest

Answer: D. Empty nest II

Explanation: Empty nest syndrome is a term used to describe the feeling of grief and loneliness which

a parent experience when their children live home for the first to some where else either to study or for work etc.

Empty nest syndrome is usually associated with Full time mother's because they are more connected to their children due to the constant Relationship between them.

Empty nest II is the loneliness or grief feelings experienced by parents after when all the children have left home and the parent now stay alone with eachother,most parents in the stage will be of ages around 64years and most are either retired or partially retired.

6 0
3 years ago
The distinction between supply and the quantity supplied is best made by saying that___________.
snow_lady [41]

Answer:

b. supply is represented graphically by a curve and quantity supplied as a point on that curve. 

Explanation:

Qunatity supplied shows how qunatity of a product changes in response to changes in  price of that good. According to the law of supply, the higher the price of good, the higher the quantity supplied and the lower the price of a good, the lower the quantity supplied.  This shows that quantity supplied has a direct relationship with price.

Changes in quantity supplied is shown by movement along a supply curve.

Changes in supply is caused by other factors other than changes in price. Some of these factors are :

Changes in price of similar goods

Tax

Change in number  of suppliers

Technological advancement

Changes in supply is shown by movement of the supply curve either to the left or to the right and not a movement along the supply curve.

I hope my answer helps you

7 0
3 years ago
IMA GOIN BROKE FROM THESE GIVAWAYS BUT HERES MORE POINTS
KIM [24]

Answer:

TYSM YOU ARE AMAZING

Explanation:

5 0
2 years ago
Read 2 more answers
Suppose there are three factories in Macroland and the following occurred in 2019: Metal, plastic and a car factory. Metal facto
BARSIC [14]

Answer:

$1120

Explanation:

The computation of the GDP is shown below:

Y = C + I + G + X

Here Y denotes the GDP

C denotes the consumption = $500 - $80 - $20 = $400 and  700 - 50 = $650

I denotes the investment  = $

G denotes the government purchase = $20

X denotes the net exports = $50

So,  

Y = $400 + $650 + 0 + $20 + $50

= $1120

8 0
2 years ago
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