Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
0.00547645125%
5 / 913 = 0.00547645125
Answer:
The correct answer is C
Explanation:
Consolidation strategy is the stage or the phase in the company or the industry lifecycle, where the segments or parts in the company or in the industry begin to merge.
Business mostly consolidate in order to gain the larger portion of the market share so as to take the benefit of synergies.
In short, this strategy, states the acquisition and merger of the smaller companies into a much larger for the economic benefit.
So, in this case, the Magnet adopted or followed the strategy of consolidation.
Im pretty sure its:
A. financial institutions
