Answer:
8.60%
Explanation:
We use the MM proposition II with taxes
ra 0.125
D 5000
E 9600 (14,600 assets = 5,000 liab + equity)
rd ??
taxes 0.34
re 0.1384
We set p the formula and solve:
rd = 0.860181818 = 8.60%
If he was the first to say he wanted the product and the seller wants to sell it as fast as possible than yes. But not technically it would be a kind of verbal understanding and agreement.
Based on the scenario above, Sasha describes herself as what she say is that she is underemployed, whereas the bureaus of labor statsitics will likely classify Sasha as being employed.
-Underemployed
is defined as having a worker to be underused to a job by which the individual’s
skill is not used.
<span>- </span>Employed – it is defined as having to provide
work to an individual and being able to pay them for their work and efforts
Answer:
$8.50
Explanation:
Computation for the net incremental cost or savings of buying the component.
Using this formula
Incremental cost = Purchase price -Cost savings
Let plug in the formula
$37 - ($10.50+ $14.50 + 3.50)
Incremental cost=$37-$28.5
Incremental cost= $8.50
Therefore the net incremental cost or savings of buying the component is $8.50
Answer:
Explanation:
a) investors wil receive 6% x ( 1-0.35)
= 3.9% risk free debt after tax.
After tax return from risk free preferred stock earnings must be equal.
to evaluate the cost of capital fro preferred stock = 3.9%/(1-0.15)
= 4.59%
b) the after-tax debt cost of capital = 6% x (1- 0.40)
= 3.60%.
therefore, 3.60% is cheaper than the 4.59% preffered stoch cost per capital
c) r* = 1 - [{(1 - 0.40)(1 - 0.15)} / (1 - 0.35)] = 1 - 0.7846 = 0.2154, or 21.54%
Hence, 4.59% x (1 - 0.2154) = 3.60%
