Answer:
7.05 %
Explanation:
After tax cost of debt = interest x ( 1 - tax rate)
so, the initial step is to determine the interest rate :
The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.
thus,
PV = - [$950 - ($950 x14%)] = - $817<em>(remove floatation cost from market price)</em>
FV = $1000
PMT = $1000 x 7 % = $70.00
P/YR = 1
N = 14
i/yr = ??
Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %
therefore,
After tax cost of debt = 9.40 % x (1 - 0.25)
= 7.05 %
Answer:
False
Explanation:
Psychographic segmentation involves classifying people by preferred activities, interests, opinions, social class, personality, and lifestyle. Psychographic segmentation categorizes customers based on internal characteristics. Psychographic segmentation requires marketers to consider what customers value in life, why they behave in specific ways, and the things they consider valuable.
Geographic segmentation is the strategy marketers use when you serve customers in the same area.
Answer: Explicit costs , Implicit cost.
Explicit Costs is an Input costs that require an outlay of money by the firm. e.g (Paying for supplies, paying workers).
Implicit Costs is an Input costs that do not require outlay of money by the firm. e.g (Could be working somewhere else and making money but giving up the money you could be making because of where you work now).
