required field means those are feilds or blanks that you have to answer
Answer:
b. 8.225%
Explanation:
The rate formula will be used to solve this question.
Please note that the NPER represents the time value.
Where;
Present value is $754.08
Let's assume that the face value is $1,000
PMT= 1,000 x 7.25% ÷2
=$36.25
NPER= 9 years x 2
= 18 years
The formulae is therefore
Rate(NPER,PMT,-,PV,FV)
The value of the present value is negative.
a. The pretax would therefore be 11.75%
b. After tax cost of debt would be ;
Pretax cost of debt x (1 - tax rate)
11.75% x (1 - 30%)
11.75% x (1 - 0.03)
=8.225%.
<span>
<span>The
liability created by receiving cash before providing the service or
delivering the goods in question is called unearned revenue. In this case, the entity providing the
goods/services records this transaction as revenue that has been generated
but in real sense, the seller remains with the liability until after the actual delivery
of the goods/services. The purpose of this practice can be advantageous to
the seller in certain situations such as easing the burden of paying interest
on debts.</span></span>
Answer:
Yes the statement does
Explanation:
Retaining small predictable layers of risk and transferring the unpredictable catastrophic layer of risk to a more capable body is a very good approach towards promoting appropriate risk financing decision making, this is because
Financial risk decisions are decisions taken between alternatives i.e risks associated with business activities . it is more appropriate to take alternatives with a predictable layer of risk,that way it would be easier for the management to handle the risk associated with it, while transferring the unpredictable catastrophic layer of risk to a more capable body ,like the Insurance companies .
