Answer: $33.19 million
Explanation:
From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.
The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:
= $86.28m - $53.09m
= $33.19 million
Answer:
The correct answer is 8%.
Explanation:
According to the scenario, the computation of the given data are as follows:
Let 1 year Treasury securities = t
So, Four year Treasury = [(Yield of 3 years Treasury × No. of year) + ( t × No. of year)] ÷ Number of year
So, by putting the value, we get
6.5% = [(6% × 3) + ( t × 1)] ÷ 4
[(6% × 3) + t] = 6.5% ×4
t = 8%
So, the rate on 1-year Treasury securities three years from now is 8%.
Answer:
$10,200
Explanation:
The computation of the deferred income tax expense or benefit is shown below:
Favorable temporary difference = $50,000
Less: Unfavorable temporary difference -$20,000
Net favorable temporary difference $30,000
We assume the tax rate is of 34%
So, the deferred tax expense is
= $30,000 × 34%
= $10,200
By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above
<span>Inflation is good because it keeps the economy growing as wages increase and demand for goods goes up, but if inflation gets high then the economy can become overheated when prices go up too fast and people can't afford goods. The Federal Reserve Bank, if you're in the USA, will then raise interest rates to make loans more expensive and rewarding people for not spending money, which slows down the economy back to a healthy state.</span>
Proper decorum and good business etiquettes are essential components of business ethics and social responsibility because they:
- Create a professional atmosphere
- Improve communication
- Make a workplace productive
- Enhance workers' respect and dignity
- Improve customer and suppliers relationships.
<h3>What are business ethics and social responsibility?</h3>
Business ethics deal with the appropriate business policies and practices that ensure the observance of ethical principles. They ensure that moral or ethical problems do not arise in a business environment.
Social responsibility refers to the cooperation that should exist among individuals and organizations for the benefit of the community.
Thus, Proper decorum and good business etiquettes remain essential components of business ethics and social responsibility.
Learn more about business ethics and social responsibility at brainly.com/question/25704651
