Ilus

A firm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. Because interest is tax deductible, t

gayaneshka [121]

Answer:

The blank spaces are not easy to spot here but I found a similar question with their correct locations. The answers for each blank will be as follows respectively;

new; new ; after-tax cost of debt ; after-tax cost of debt ; after-tax cashflows; new debt; not outstanding debt ; irrelevant ;new capital; yield to maturity; coupon rate; yield to maturity; long term debt ; long-term projects.

Explanation:

The cost of new debt is the before-tax cost of debt and does not reflect the cost of outstanding debt. Interest paid on the new debt is tax-deductible and that's why you calculate the after-tax cost of debt to use in the firms WACC formula. Since the main goal of a business managers is to increase a firm value, you use the after tax cashflows to valuate the business. Additionally, the cost at which the firm borrowed in the past is irrelevant in WACC calculation because the cost we need to know is of the new capital.

7 0

3 years ago

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then _____.

Mice21 [21]

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then the government should make the price equal to the marginal cost.

Monopolies are businesses that are dominated by few people in the industry. They have little competition from others and have high barriers to entry.

They can sometimes reduce production to increase the price of their goods and services.

The government can regulate the activities of monopolies by making their price equal to the marginal cost.

Learn more about monopolies here:

brainly.com/question/13113415

8 0

3 years ago

Name four human rights in the workplace

prohojiy [21]

Answer:

-dignity

-respect

-loyalty

-fairness

-equality

Explanation:

8 0

3 years ago

A university officer wants to know the proportion of registered students that spend more than 20 minutes to get to school. He se

vlada-n [284]

Answer:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

$n\hat p =25*0.52= 13 \geq 10$

$n(1-\hat p) = 25*(1-0.52) =12 \geq 10$

So then we satisfy this condition

3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.

So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So then the answer for this case would be:

a. Yes.

Explanation:

For this case we assume that the question is: If in the experiment described we can use the normal approximation for the proportion of interest.

For this case we have a sample of n =25

And we are interested in the proportion of registered students that spend more than 20 minutes to get to school.

X = 13 represent the number of students in the sample selected that have a time more than 20 min.

And then the estimated proportion of interest would be:

$\hat p = \frac{X}{n}= \frac{13}{25}= 0.52$

And we want to check if we can use the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So in order to do this approximation we need to satisfy some conditions listed below:

1) We need a random sample. For this case we assume that the sample selected was obtained using the simple random sampling method.

2) We need to satisfy the following inequalities:

$n\hat p =25*0.52= 13 \geq 10$

$n(1-\hat p) = 25*(1-0.52) =12 \geq 10$

So then we satisfy this condition:

3) 10% condition. For this case we assume that the random sample selected n represent less than 10% of the population size N . And for this case we can assume this condition.

So then since all the conditions are satisfied we can conclude that we can apply the normal approximation given by:

$p \sim N (\hat p, \sqrt{\frac{\hat p (1-\hat p)}{n}})$

So then the answer for this case would be:

a. Yes.

3 0

3 years ago

Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa

lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.

3 0

3 years ago