Answer:
5.71%
Explanation:
The after tax cost of debt=pretax cost of debt*(1-t)
where t is the tax rate of 35% or 0.35
pretax cost of debt=yield to maturity
The yield to maturity can be determined using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years
pmt is the annual coupon=$1000*9.5%=$95
pv is the current market price-flotation cost=$1,100-$48=$1052
fv is the face value of $1000
=rate(12,95,-1052,1000)=8.78%
After tax cost of debt=8.78%
*(1-0.35)=5.71%
If the company's annual profits decrease (the amount of cash they make per year) then that would lead to a decrease in the price of a company's stock.
The option that makes the most sense for the party by Mr and Mrs Atoll is one case of 24 sodas at $18.50.
<h3>Why this option is the cheapest</h3>
The reason for this is that given the guests they are entertaining, this option is the most cheapest and effective.
How to calculate for the way that the drink would go round
a. Each bottle is $1.5. Two bottles for 1 = 1.5x2 = 3 dollars
b. six packs at 5$. One= $0.88
c. A case of 24 sodas at $18.5. one soda is going to be 18.5/24 = $0.77
d. Two cases of 24 soda at 18.5 = $1.54
Given the calculations that have been done above, option c at $0.77 is the cheapest. It would require them to send the less money in getting sodas that would go round twice for 10 people.
Read more on the economy here: brainly.com/question/1106682
Answer:
Step 1: Include the date.
Step 2: Name the recipient.
Step 3: Fill in the amount with numerals.
Step 4: Write out the amount in words.
Step 5: Say what it's for.
Step 6: Sign your name.
Money is called a store of value because it allows us to:
- Save
- Allocate capital
- Have confidence in money
When money is a store of value, it means that it is capable of being held such that it can increase our wealth and net worth. This is why it can be saved and used as a means of capital.
When money is a store of value, we have confidence in its ability to be used to carry our wealth into the future.
In conclusion, money being a store of value means that we have confidence in it.
<em>Find out more about the </em><em>functions </em><em>of </em><em>money </em><em>at brainly.com/question/3182649. </em>
