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Archy [21]
2 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]2 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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As it relates to international trade, dumping: A. is defined as selling more goods than allowed by an import quota. B. constitut
amid [387]

Answer:

C. is the practice of selling goods in a foreign market at less than cost.

Explanation:

As it relates to international trade, dumping <u>is the practice of selling goods in a foreign market at less than cost</u>. Dumping is the practice of selling a product in a foreign market at an unfairly low price (a price that is lower than the cost in the home market) or in order to gain some advantage over the other suppliers.

6 0
3 years ago
Developing a resilient brand is less about ________ and more about ________. a. selling products; generating leads b. generating
aalyn [17]

Developing a resilient brand is less about <u>pushing a product</u> and more about <u>building trust</u> with the consumers.

<h3>What is a resilient brand?</h3>

Resilience in branding relates to the concept of creating brands that can last longer in the market.



The qualities of a resilient brand are, they able to:

  • change with the requirements of the consumers
  • recover from setbacks
  • achieve extension over new products types
  • take on new business models
  • win the customers every time.

See the link below for more about resilient brand:
brainly.com/question/14286452

3 0
2 years ago
James hires Franco for a painting job. Their contract explicitly states that​ Franco's employment can be terminated if he is emp
brilliants [131]

Answer: condition subsequent

                                         

Explanation:  A condition subsequent is an incident or set of circumstances that bring something to a conclusion. A subsequent circumstance is being used as a symbol in a legal sense to put an end of one's constitutional rights or responsibilities.

This generally occurs when someone do anything illegal or unethical in the eyes of law. In the given case, Franco got employed by some other party although he had a contract with James that he cannot do that. Hence we can conclude that the given case depicts condition subsequent.

8 0
2 years ago
Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 m
lubasha [3.4K]

Answer:

NPV = $1.49  million

Explanation:

<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.  </em>

<em>NPV of an investment:  </em>

NPV = PV of Cash inflows - PV of cash outflow  

But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:

Step 1: After-tax cost of debt

After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)

                                 = 9%× (1--0.3)=6.3%

Step 2 : Weighted Average cost of capital (WACC)

WACC=( 0.25×6.3%) + (0.75× 13%) =11.325 %

Step 3:Net Present Value (NPV)

PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49  million

Initial cost = $48 million

NPV = 49.49  million -  $48 million  =$1.49  million

NPV = $1.49  million

7 0
3 years ago
You are given the following data concerning​ Freedonia, a legendary​ country: Consumption​ Function: C​ = ​+ Y ​Investment: I​ =
Grace [21]

Answer and Explanation:

Given that

Consumption function C = 200 + 0.9Y

Investment I = 300

Aggregate expenditure  AE = C + I

Equilibrium AE = Y

Based on the above information

a. The level of equibrium income is

Y = AE = C + I

Y = 200 + 0.9Y + 300

0.1Y = 500

Y = 5000

b. The value of the investment multiplier is

= 1 ÷ (1 - MPC)

= 1 ÷ (1 - 0.9)

= 10

c. The change in the level of equilibrium income if investment increases by 10 is

Y = 200 + 0.9Y + 310

0.1Y = 510

Y = 5100

Change is

= 5,100 - 5,000

= 100

6 0
2 years ago
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