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Brut [27]
3 years ago
8

An unlevered firm has a cost of capital of 12.46 percent and a tax rate of 35 percent. The firm is considering a new capital str

ucture with 35 percent debt. The interest rate on the debt would be 6.68 percent. What would be the firm's levered cost of
Business
1 answer:
Burka [1]3 years ago
4 0

Answer:

Firm's levered cost of capital = 14.48% (Approx.)

Explanation:

Given:

Cost of capital = 12.46 percent = 0.1246

Tax rate = 35 percent = 35%

New capital structure = 35 percent debt = 35%

Interest rate = 6.68 percent = 0.0668

Find:

Firm's levered cost of capital

Computation:

Firm's levered cost of capital = 0.1246 + [35% / (1 - 35%)](1 - 35%)(0.1246 - 0.0668)

Firm's levered cost of capital = 0.1448

Firm's levered cost of capital = 14.48% (Approx.)

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In 2005, mandy and hal (mother and son) purchased land for $600,000 as joint tenants with right of survivorship. of the $600,000
Romashka [77]

Answer:

$500,000

Explanation:

Actual amount contributed by Hal to the land purchase = Contribution - Gift from mandy = $300,000 - $200,000 = $100,000

Hal's contribution weight in the land = 100,000 ÷ 600,000 = 1 ÷ 6

Hal's gross estate in the land = $3,000,000 × (1 ÷ 6) = $500,000

Therefore, as to the land, hal's gross estate must include $500,000.

4 0
3 years ago
Give the formulas for and plot average fixed​ cost, AFC, marginal​ cost, MC, average variable​ cost, AVC, and average​ cost, AC,
zloy xaker [14]

Answer:

AFC = \frac{TFC}{q}

MC = \frac{d}{dq} TC

AVC = \frac{TVC}{q}

AC =  \frac{TC}{q}

Explanation:

The cost function is given as C=9+q^{2}.

The fixed cost here is 9, it will not be affected by the level of output.

The variable cost is q^{2}.

AFC = \frac{9}{q}

MC = \frac{d}{dq} TC

MC = \frac{d}{dq} C=9+q^{2}

MC = 2q

AVC = \frac{TVC}{q}

AVC = \frac{q^2}{q}

AVC = q

AC =  \frac{TC}{q}

AC =  \frac{[tex]C=9+q^{2}}{q}[/tex]

AC = \frac{9}{q} +q

3 0
3 years ago
Worth 20 points:)
dexar [7]

The act that created a “pay-as-you-go” system that requires Congress to raise enough revenue to cover increases in direct spending

B. the 1990 Budget Enforcement Act

Question2 Every hour, the federal government spends about

B. $250 thousand

Explanation:

The act came as a response to the impending recession the western markets in the 1990 fiscal year which was to hit USA particularly hard. This came as a result of and in contrast with many conservative measures taken by the President George W Bush Sr up until that point.

The president had been saying till then that  the opposition and the population could read his lips that there will not be new taxes.

It did happen though as this law allowed the government to increase taxation rates to cover governmental spending.

4 0
3 years ago
Read 2 more answers
The Hutters filed a joint return for 2019. They provide more than 50% of the support of Carla, Ellie, and Aaron. Carla (age 18)
sergey [27]

Answer:

Hutters can be claim two dependents

Explanation:

we know here that Hutters can be claim two dependents

because here given Carla and Ellie as Aaron meets neither the residency nor citizenship requirement

but Carla is a qualifying relative and is under the age of 24

but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable

so

we can say that answer is two

8 0
3 years ago
Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. Complete th
PSYCHO15rus [73]

just saying hi hint use google like i do

Explanation:

6 0
3 years ago
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