When it has a small population
Answer:
The WACC change if the new tax rate was adopted is - 0.35%
Explanation:
For computing the WACC change, first we have to determine the after tax cost of debt by applying the 40% and 45% tax rate which is shown below:
After tax Cost of debt = Cost of debt × ( 1- tax rate)
For 40% tax rate, it would be
= 7% × ( 1 - 40%)
= 4.2%
For 45% tax rate, it would be
= 7% × ( 1 - 45%)
= 3.85%
The change in WACC would be
= 3.85% - 4.2%
= - 0.35%
Alright bud so basically what maximizes the amount of interest you can make would be a high interest rate along with a long period of time
Answer:
Option C is correct one.
expected return of 38 percent; standard deviation of 38 percent
Explanation:
Expected return of 38 % and Standard deviation of 38%. this will be optimum return and not an efficient frontier.
Answer:
$51,500
Explanation:
The computation of the cost of goods sold for the year is shown below:
As we know that
Cost of Goods Sold = Beginning balance of Finished Goods Inventory + Cost of Goods Manufactured – Ending balance of Finished Goods Inventory
= $2,000 + $55,000 - $5,500
= $51,500
We simply applied the cost of goods sold formula by taking the three items into the computation part
