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Archy [21]
3 years ago
6

An investment has the following characteristics: ATIRRP: After-tax IRR on total investment in the property: 9.0% BTIRRE: Before-

tax IRR on equity invested: 17% BTIRRP: Before-tax IRR on total investment in the property: 12% t: Marginal tax rate: 0.40 What would be the break-even interest rate (BEIR), at which the use of leverage is neither favorable nor unfavorable
Business
1 answer:
pshichka [43]3 years ago
5 0

Answer:

15%

Explanation:

Calculation to determine would be the break-even interest rate (BEIR)

Using this formula

Break-even interest rate (BEIR)= After tax IRR on total investment / (1- Tax rate)

Let plug in the formula

Break-even interest rate (BEIR)=9% / (1-0.40)

Break-even interest rate (BEIR)=9%/0.60

Break-even interest rate (BEIR)= 15%

Therefore would be the break-even interest rate (BEIR), at which the use of leverage is neither favorable nor unfavorable is 15%

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they provide additional information about the visual

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<h3>What is Administrative Trade Policies?</h3>

Administrative trade policies are bureaucratic rules designed to make it difficult for imports to enter a country. These are rules and regulations made by the government to control the entry of particular products into the country.

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6 0
2 years ago
Financial markets are generally recognized as being semi-strong form efficient, which means
bonufazy [111]

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The correct answer is letter "B": all publicly available information is reflected in current prices.

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8 0
4 years ago
A local jacket distributor expects to sell 9,000 black fleece jackets in a year. Assume that EOQ model assumptions are valid. Ea
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