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brilliants [131]
3 years ago
7

The pretax cost of debt: Group of answer choices Is based on the current yield to maturity of the firm's outstanding bonds. Is e

qual to the coupon rate on the latest bonds issued by a firm. Is equivalent to the average current yield on all of a firm's outstanding bonds. Is based on the original yield to maturity on the latest bonds issued by a firm. Has to be estimated as it cannot be directly observed in the market.
Business
1 answer:
SIZIF [17.4K]3 years ago
6 0

Answer:

The correct answer is letter "A": Is based on the current yield to maturity of the firm's outstanding bonds.

Explanation:

The cost of debt is the interest a company pays on its borrowers. It is expressed as a percentage rate. The cost of debt can be calculated as before-tax rate or an after-tax rate. Most of the time, the cost of debt is the before-tax rate of the cost of debt because that is how the company's cost of debt is calculated. <em>That calculation implies considering the average interest paid on all the company's debts, including outstanding bonds.</em>

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Which of the following fiscal policy action would cause the economy to contract?
maksim [4K]
<span>This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too. </span>
4 0
2 years ago
To spur trade, four South American countries decide there will be no barriers to trade between the countries, agree on a common
Dmitriy789 [7]

Answer:

A free trade area

Explanation:

A free trade area comes to existence when two or more countries sign an agreement that eliminates or reduces trade barriers among themselves. Usually, nations in the same region sign a free trade agreement that encourages economic cooperation.  In a free-trade area, goods and services can move from one country to another with minimal or no government interference in terms of tariffs, embargo, quotas, or other prohibitions.

The four South American countries have formed a free trade area. They have agreed to economic cooperation that allows free flow of trade among the nations. The countries have established a trading block that will spur economic growth in each of them.

6 0
3 years ago
One of the great benefits of trade is
Tanzania [10]

I believe the answer is: B.That it makes it possible for society to become better off by increasing both its production and its consumption.

Without trades, in order to fulfill all needs of the people, a country need to separate their time and resources to produce each of the needed products. With trades, a country could increase the production of the products in which they have a natural advantage at, and trade the products with other countries in case we need different product that we do not produce here.

6 0
3 years ago
Grandfather clocks have a particular market in auctions. One theory about the price at an auction is that it is higher when ther
anastassius [24]

Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

H0 : mu = 1327

ha: mu > 1327

This is a one tailed test

Critical value = 1.771

at 0.05 significance level with df = 14-1 = 13

test statistics:

s = 411.53, n = 14

t = (xbar -mu)/(s/sqrt9n))

= ( 1491.43 - 1327)/(411.53/sqrt(14))

= 1.495

Decision:

Reject H0 if tstat > 1.771

Fail to reject H0

5 0
3 years ago
Explain external economics and external diseconomics​
Effectus [21]

Answer:

If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .

Explanation:

Thaats whaaat upp

4 0
3 years ago
Read 2 more answers
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