Answer:
10%
Explanation:
Given that,
Interest at last year debt = 8%
Current year cost of debt = 25% higher
Firms paid for debt last year = 10%
Firms paid for debt in current year = 12.50%
Kd - cost of debt
Yield = Interest at last year debt × (1 + increase in cost of debt)
= 8% × (1 + 0.25)
= 8% × 1.25
= 10%
Kd = Yield (1 – T)
Kd = 10% (1 – 0)
= 10% (1)
= 10%
Therefore, after tax cost of debt would be 10%.
Answer:
The answer is
For 2018 - 1.5
For 2019 - 1.3
Explanation:
Asset turnover ratio=Net sales/average total assets
For 2018:
Sales - $480,000
Beginning asset - 360,000
Ending asset -360,000
Average total asset:
($280,000 + $360,000)/2
=$320,000
Therefore, asset turnover for 2018 is:
$480,000/$320,000
=1.5
For 2019:
Sales - $513,500
Beginning asset - $360,000
Ending asset - $430,000
Average total asset:
($360,000 + $430,000)/2
=$395,000
Therefore, asset turnover for 2019 is:
$513,500/$395,000
=1.3
Nikes target market or consumers are athletic individuals. They use the marketing mix that involves athletic products made for professional athletes but can be used for leisurely activities making it more accessible to the general population. Their commercials display fit models wearing Nike brand athletic shoes, clothing, and or using Nike equipment. The company also invests in research to improve product effectiveness and customer satisfaction.
Answer:
a) Portfolio ABC's expected return is 10.66667%
Explanation:
The expected return is based on the risk factor of a project. If a project has higher risk its rate of return will be higher. Portfolio ABC has one third of its funds invested in each stock. The return of on A and B are 20% and 10%. Their beta is 1.0 for both the stocks while stock C has beta 1.4. The portfolio expected return will be 10.66667%.
The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method
The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.
It is to be measured in years normally.
For finding the disadvantage, we need to find out the following information related payback period
- It is easy to calculate
- The cash flows earned after the payback period should not be used
- There is no requirement to determine the present value factor for measuring the payback period.
- Also, it does not use for distinct cheap projects from lower ones
So this is the reason this method ignored the times value of money
Therefore, we can conclude that, the correct option is b.
Learn more about the payback method here: brainly.com/question/16255939
