Answer:
After tax cost of debt is 4.85%
Explanation:
The starting to computing the after tax cost of debt is to calculate the yield to maturity on the bond .
The yield to maturity on the bond can be computed using the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the time to maturity of 30 years multiplied by 2 since the bond is paying interest on semi-annual basis
pmt is the semi-annual interest receivable by investor which 6.0%/2*$1000=$30
pv is the current market price :$1000*98% =$980 (100-2%),1% deducted for discount,1% for issue cost
fv is the face value of $1000
=rate(60,30,-980,1000)
rate=3.07%
The 3.07% is the semi-annual YTM, whereas the annual YTM 3.07%
*2=6.14%
After tax cost of debt=YTM*(1-0.21)
=6.14%*(1-0.21)
=4.85%
The answer is A. A restaurant manager greets customers mechanically at the entrance.
Answer:
Slow industry growth
Explanation:
Slow industry growth is the growth that shows the industry at a slow rate or no growth is there.
It could arise when the consumer does not opt for a high demand
In the given situation, it is mentioned that when competitive firms aggressively trying to attract the customers of competitors so this is an indication of the slow economic growth and hence, the same is to be considered
Hello there.
<span>The Accounts Receivable account has total debit postings of $1,900 and credit postings of $1,100. The balance of the account is a/an
Answer: </span><span>A. $800 debit.
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Answer:
Resource Market
Explanation:
A resource market is a market from where businesses purchase inputs that can be used for production.
Resource Market is a market where labor and other factors of production are sold in the circular flow model of income in economic theory.
In Resource Market, households are the sellers and firms are the buyers.
