Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08
Answer:
D) The supply of the output from the hydroelectric power plants to increase
Explanation:
The externality here is a negative one where the hydroelectric plants has to bear the cost of pollution as the paper mills operates.
Correcting means to make the paper mills pay for the external costs of their production and compensate the power plant for the additional cost that incurred as they have to clean up the water.
As the cost of production reduces, the power plant will be more willing to supply electricity at similar prices, ie. their supply curve will shift to the right. It will intersect with the demand curve of the consumers at a point with higher quantity (and maybe lower price)
In other words, they will supply more electricity.
Answer:
analogous
Explanation:
both green and yellow are a part of analogous
Answer:
A Public Company is owned and traded publicly on the stock exchange. A Private Company is owned and traded privately. Limited can use after the public company name (Example- ABC Limited). Private Limited can be used after the private company name.
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