Answer:
Transaction Costs is the correct answer.
Explanation:
Answer:
$26.52.
Explanation:
We use the MM Proposition I formula as follows:
VL = VU + (Tc * D) ....................................................... (1)
Where;
VL = Value of a levered firm, i.e. X = ?
VU = Value of an unlevered firm, i.e. Y = $24
Tc = Tax rate = 21%
D = value of debt = $12
Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.
Substituting the values into equation (1), we have:
VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.
Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.
The APR is greater than the APOR threshold; hence, it is an example of higher priced loan.
<h3>What is
APOR?</h3>
APOR means authorized persons outside of residence and are used by government since the first lockdown in March 2020.
APOR threshold = Current APOR + 1.5%
APOR threshold = 4.672% + 1.5%
APOR threshold = 6.172%
The given APR in question is 6.474%.
In conclusion, the APR is greater than the APOR threshold; hence, it is an example of higher priced loan.
Read more about APOR
<em>brainly.com/question/13834243</em>
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