Answer:
13.33%
Explanation:
The computation of the equivalent taxable yield is shown below:
Data provided in the question
Coupon rate = 8%
Combined tax bracket = 40%
So, the equivalent taxable yield by using the above information is
= (Coupon rate) ÷ (1 - tax rate)
= 8% ÷ 1 - 0.40
= 8% ÷ 0.60
= 13.33%
Basically we divide the coupon rate by the percentage after considering the tax rate
Answer:
B) To maximize profit, firms should produce at a level of output where price equals average variable cost
Explanation:
Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the average variable cost.
Answer:
Required rate of return is 6.97%
Explanation:
The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:
Stock price =dividend/required rate of return
stock price is $80.40
required rate of return is unknown
the dividend on the preferred stock is $5.60
required rate of return=dividend/stock price
required rate of return =$5.60/$80.40=6.97%
The required rate of return based on the stock price and dividend information provided is 6.97%
The NPV of the venture is -$sixteen,752.55.
In accounting, the working capital overall is typically derived from the figures for present-day belongings and present-day liabilities recorded on the stability sheet. as an instance, a corporation with $2 hundred,000 in cutting-edge property and $100,000 in modern liabilities has operating capital of $100,000.
The working capital calculation is working Capital = present-day assets - modern Liabilities. as an example, if an agency's stability sheet has 300,000 total modern assets and 200,000 total modern liabilities, the corporation's working capital is one hundred,000 (property - liabilities).
Working capital is just what it says – it's for the cash you have to paint with to meet your short-time period needs. it is vital because it's miles a degree of an organization's capacity to repay quick-term costs or money owed.
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Hahahaha basic its only letter a