Answer:
Option (B) is correct.
Explanation:
Given that,
Total Assets = $23,610
Interest-Bearing Debt (market value) = $11,070
Average borrowing rate for debt = 10.2%
Common Equity:
Book Value = $6,150
Market Value = $25,830
Marginal Income Tax Rate = 37%
Market Beta = 1.73
Hence,
Weight on equity capital = Equity ÷ (Debt + Equity)
= 25,830 ÷ (11,070 + 25,830)
= 25,830 ÷ 36,900
= 70%
Therefore, the weight on equity capital is 70%.
Answer:
$0.00
Explanation:
LICC company issued the share and gave them to the officer, ABLE. During the same year, the condition on the stock is met to sell them, and ABLE exercises this option. LICC custody of the stock ends when the condition is met and ABLE can sell the shares.
These stocks belong to ABLE and selling these shares will impact their income tax, not the company. ABLE is a different tax-subject than LICC. Thus, LICC income taxes do not absorb the gain on sale in this transaction.
The answer is C
<span>Getting information from reliable sources</span>
The reduction of waste, most economic concepts are focused on growth and consumption. Reducing waste doesn't really fit this.
