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Aleks04 [339]
3 years ago
15

A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to:____

__. A) Tax policy and spending policy B) A progressive income tax and a welfare state C) Interest rates and the money supply D) Interest rates and tax rates
Business
1 answer:
pishuonlain [190]3 years ago
5 0

Answer:

Option A is the correct approach.

Explanation:

  • This is indeed a connection to compulsory tax and government expense stabilizers which weren't at the discretion including its government. Throughout the event of a recession, expenses are cut, rising discretionary income to something like the extent that the economic depression is pacified.
  • Unemployment insurance, as well as other social programs, are consequently expanded without the clear intervention of the government

The other options offered are also not relevant to the scenario presented. So, the solution above is the right one.

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Calculate the firm’s WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equ
tester [92]

Answer:

Before tax cost of debt is 7.12%

After tax cost of debt is 4.27%

Cost of equity is 10%

Explanation:

The before-tax cost of debt can be determined using excel rate formula as found below:

=rate(nper,pmt,-pv,fv)

nper is the number of semiannual payments the bond has i.e 20*2=40

pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50  

pv is the current price =$1000*104%=$1,040.00  

fv is the face value of $1000

=rate(40,37.50,-1040,1000)=3.56%

The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)

After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4

after-tax cost of debt=7.12%*(1-0.40)=4.27%

Cost of equity is determined using the below CAPM formula:

Ke=Rf+Beta*(Mr-Rf)

Rf is the risk free rate of 4%

Beta is 1.2

Mr is the market return of 9%

Ke=4%+1.2(9%-4%)=10.00%

7 0
3 years ago
A salesperson receives a base salary of $1,200 per month plus a commission of 6 percent on each sale. The following sales were m
Sveta_85 [38]

Answer:

$4062

Explanation:

base salary of $1,200

+ 6% of each sale

so $1,200 + $390 + $619.20 + $42 + $70.80 + $1,740

=$4062

5 0
2 years ago
Select the correct answer from the drop-down menu.
MissTica

Answer: Macro, External

Explanation:

Macroeconomics effect the entire world, while it scrutinizes the external forces that affect the company.

3 0
2 years ago
Which statement is supported by the information in the
sleet_krkn [62]

Answer:C. The price per stock declined from 2008 to 2009

Explanation: the graph declines at 2008 and increases at 2009

5 0
2 years ago
Read 2 more answers
What is the process of getting a product to a consumer? A. Research B. Distribution C. Wholesale D. Subcontracting
Oxana [17]
I think it b distribution
3 0
3 years ago
Read 2 more answers
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