Answer:
The After Tax Cost of Debt = 0.072 or 7.2%
Explanation:
The question is to determine the After Tax Cost of Debt for Rolling Stone.
This is carried out as follows
Step 1: When we decide to calculate the Yield to Maturity, it should be noted that Market Value = Par Value
Therefore,
Coupon Rate which is the same as the Yield to Maturity (YTM) = 12%
Step 2: Based on this derivative, therefore,
After Tax Cost of Debt = Yield TO Maturity Rate (1-Marginal Tax Rate)
= 12% (1-40%)
= 0.12 (1-0.4)
The After Tax Cost of Debt = 0.072 or 7.2%
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Answer:
a tax bracket refers to a range of income subject to a certain income tax rate.
Explanation:
so basically it's just a range of income taxed at a given rate
Answer:
Communicating value
Explanation:
Communicating value involves showing others what makes one's product or skills different and better than others that are available.
What value means to stakeholders in a situation needs to be defined.
Focus is then given to how the skill or product can meet these unique needs.
Also one needs to understand the most effective platform to use in communicating value.
In this instance Ethan wants to make his resume stand out from all the other resumes that the company receives in order to be selected for an interview
He is communicating the value he can add to the company.
People grow in different ways in their business. Jeremy's firm is experiencing Sustained growth.
- Sustained growth often takes place when a state controls all monetary creation, set up a market-based exchange rate, and handles property rights.
For when a person experienced sustained growth for only a short timeframe, the increase in wealth inequality is likely to be greatest for the fast-growing economies.
The food company has increased steadily in its revenue without additional financial aid, and its growth is sustained.
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