Answer: Wages are flexible if the economy is self-regulating.
Explanation:
Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.
For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.
For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.
Answer:
vertical integration
Explanation:
The plant owners would have to adopt a vertically integrated organization because the plant is not redeployable to other uses and is dependent on the supply chain/complementary assets. Vertical integration occurs when an organization owns and controls it's distribution or supply chain in order to maximise profits and reduce costs or inefficiency. By controlling the supply chain, the chain of distribution of the coal mine tonnage can be improved in terms of efficiency and value in revenue.
Answer:
1) identify your problem: Try to describe the problem as much as possible, as opposed to focusing on the potential consequences or implications of the problem.
2) Pin point the problem
3) so that means you should do research based on the problem ^
4)Try evaluating the problem.. perhaps looking at it in perspective ^
5)see how the problem could affect you or others
6) Then work out a plan to solve the problem
The after-tax cost of debt is 6.28%. Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.
<h3>What is After-tax cost?</h3>
- After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
- WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
- WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).
Therefore,
The after-tax cost of debt is 6.28%.
FV = -$1,000
PMT = -$100
N = 20 years
PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.
Compute I/Y = 9.511%
After-tax cost of debt = 9.511%×(1-.34) = 6.28%
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Answer:
PV= $8,511.40
Explanation:
Giving the following information:
Final value= 15,000
Number of years= 5 years
Interest rate= 12%
We need to calculate the present value of the $15,000. We will use the following formula:
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 15,000/1.12^5
PV= $8,511.40
