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2 years ago

Which of the following statements describes the cost of capital?

Business

1 answer:

professor190 [17]2 years ago

8 0

Answer: The minimum rate of return on investments.

Explanation:

The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.

The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.

The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.

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The $1,000 par value bonds of uptown tours have a coupon rate of 6.5 and a current price quote of 101.23. what is the current yi

Paul [167]

Hello, to get the current yield of the bond, determine first the annual interest payment which is calculated as stated interest rate times the face value of the bond. In this question, the bond’s value is $1,000 and the stated interest rate is 6.5 percent, therefore, the annual interest payment is 65. Finally, the annual interest payment of 65 is divided by the current market price quote of 101.23 to get the current yield of 64.21%. Hope this helps.

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3 years ago

Approximately ________ percent of the federal budget is in the mandatory spending category

Goshia [24]

The answer is 9%. According to the CBO, defense expenditure grew 9% yearly on average from fiscal year 2000-2009. Much of the costs for the conflicts in Iraq and Afghanistan have not been subsidized through regular arrogations bills, but over emergency supplemental appropriations bills.

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3 years ago

In 2019, George and Martha are married and file a joint tax return claiming their two children, ages 10 and 8 as dependents. Ass

Tresset [83]

Answer:

The answer is option (b)$4,000

Explanation:

Solution

Given that:

Now

The income of George and Martha is =$119.650

For year 2019 child tax credit is $2,000 per dependent child subject to a minimum income of $2,500.

The Income limit for Married Jointly Filed is= $400,000.

Thus

They are eligible for $2,000 tax credit per child.

So,

Tax Credit = $2,000 * 2

= $4,000

Note: The AGI limit phaseout begins at $400000 for joint tax filers

8 0

3 years ago

Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired consumption, investment, gover

Rudiy27

Answer:

The response options are:

B) real national income and AE.

C) AD and real national income.

D) the price level and desired consumption.

E) the price level and the equilibrium level of demand-determined national income.

The correct answer is: E) the price level and the equilibrium level of demand-determined national income.

Explanation:

Aggregate demand is the total planned or desired expenditure in the economy as a whole in a given period. It is determined by the aggregate price level and by factors such as investment, public spending and money supply.

COMPONENTS OF THE ADDED DEMAND:

Consumer expenses of domestic economies. It is the main component of aggregate demand.

Investment expenditure of companies or domestic economies. It refers to the increase in the physical capital stock, including the accumulation of stock of companies.

Purchases of goods and services for public service. Component

important, includes, for example, national defense expenses, salaries of officials, infrastructure, construction, etc.

Foreign demand (international trade). They are net exports exports - imports). It is a component of the total demand for the goods of an economy. The trade flows of a country are an engine that drives the economy to better product levels.

7 0

3 years ago

Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increa

melamori03 [73]

Answer:

Cashflow from Operating Activities $

Net income 61,000

Add: items not involving movement of cash

Depreciation 76,000

137,000

Changes in working capital:

Increase in prepaid rent (56,000)

Increase in accounts payable 11,000

92,000

Less: Tax 16,000

Cashflow from operating activities 76,000

Explanation:

Cashflow from operaing activities using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.

4 0

3 years ago