Answer: A. reducing the number of people eligible for Medicare and Medicaid by half
E. raising the age to receive Social Security to 75
Explanation: That’s correct! By raising the age to receive Social Security to 75 and reducing the number of people eligible for Medicare and Medicaid by half, the government would dramatically and permanently reduce its outlays because these are mandatory payments.
Answer:
7.20%
Explanation:
Given that
Coupon rate = 9%
Yield to maturity = 12%
And marginal tax rate is 40%
So by considering the above information, the after tax cost of debts is
= Yield to maturity × (1 - tax rate)
= 12% × (1 - 0.40)
= 7.20%
After considering the tax rate and then multiplying with the yield to maturity we can get the after tax cost of debt
We ignored the coupon rate
Answer:
D. $5.40 per direct labor-hour and $11,065
Explanation:
The computation of the total job cost is shown below
= Direct material cost + direct labor cost + direct labor hours × predetermined overhead rate
= $715 + $9,000 250 hours × $5.4
= $715 + $9,000 + $1,350
= $11,065
The predetermined overhead rate is come from
= Total fixed manufacturing overhead cost ÷ direct labor hours + variable manufacturing overhead cost per direct labor hours
= $160,000 ÷ 80,000 direct labor hours + $3.40
= $2 + $3.40
= $5.40
