Answer:
66.67%
Explanation:
First, we need to calculate the Interest paid
Tax Paid = 25% x 8% = 2%
Tax paid is the nominal rate, now we need to calculate the real rate.
Before-tax real interest rate = Nominal Interest rate - Inflation rate
Before-tax real interest rate = 8% - 5% = 3%
True Income Tax rate = Tax paid / Before-tax real interest rate
True Income Tax rate = 2% / 3%
True Income Tax rate = 66.67%
Answer:
Option c. is correct
Explanation:
A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.
In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.
Answer:
Letter d is correct. <u><em>Increase in the demand for cranberry juice.</em></u>
Explanation:
<u>Substitute products</u> are those that can be replaced by other products that are not similar but and which meet the same needs as customers may have greater benefits or a lower price offer.
This concept is presented by <em>Porter</em> as a model of competition analysis that influences business strategy, called <em>Porter's 5 forces</em> that, in addition to other variables, analyzed substitute goods and how they contribute to market division.
Therefore, in this question, when the price of orange juice increases, the demand for cranberry juice increases as it is a substitute product
A federal budget deficit occurs when federal government purchases exceed net taxes. Option C is correct.
<h3>What is federal budget?</h3>
The federal budget is the budget of the United States. It comprises the federal government's spending and revenues.
The budget is the monetary or medium of exchange expression of the priorities of the government and showing the past conflicts and conflicting economic views.
A federal budget deficit occurs when government spending exceeds revenue, which is the money collected from, fees, taxes and investments. Deficits add to the national debt, or debt owed by the federal government.
Therefore, option C is correct.
Learn more about the federal budget, refer to:
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To attract customers to their store and not their more expensive competitors?
