Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
How much taxes they take off
Answer:
Ok So.... A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations.
Answer:
B. To enable rationing
Explanation:
<em>The purpose of price ceiling would be to enable rationing.</em>
A price ceiling represents an imposed price control over a product. It is the maximum amount a manufacturer or a supplier is allowed to charge for a product within an economy.
Price ceilings are imposed so as to ensure that prices of products remain within the range of an average consumer within a population and prevent excessive upward movement of prices.
<u>Price ceilings help in rationing. It ensures that an average consumer is not overcharged for products in as much as the manufacturer/suppliers get reasonable profit for their production.</u>
Answer:
Contribution margin per unit = $85 per cubic yard
Contribution margin ratio = 56.67%
Explanation:
The computations are calculated below:
Contribution margin per unit = Selling price per cubic yard - variable cost cubic yard
= $150 - $65
= $85 per cubic yard
Contribution margin ratio would be
= (Contribution margin per cubic yard) ÷ (Selling price per cubic yard) × 100
= ($85) ÷ ($150) × 100
= 56.67%
And, The statement of contribution margin income for the month of August is shown below:
Sales (240 cubic yards × $150) $36,000
Less: Variable cost (240 cubic yards × $65) ($15,600)
Contribution margin $20,400
Less: Fixed expenses per month ($15,000)
Net income $5,400