Answer:
The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.
The correct answer is D
Explanation:
In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.
Answer:
A. supply curve shifts to the left
Explanation:
An increase in the prices of inputs from $4 to $6 shows economic problems that include a reduction in capital stock, labor, and an increased unemployment rate. This can also give room for inflation.
This increase shows that due to shortage in labor supply, it now costs more to produce a product.
Due to all the above mentioned reasons, the supply curve of both long run and short run supply curves shifts left.
Cheers.
Answer:
A. dividendsminus−received deduction.
Explanation:
This allows companies to avoid mostly third taxes on the same earnings.
It is explained to be a federal tax deduction in the U.S. that is given to certain corporations that get dividends from related entities. The amount of the dividend that a company can deduct from its income tax is tied to how much ownership the company has in the dividend-paying company. However, there are criteria that must be met in order to qualify for a DRD.
The dividends received deduction allows a company that receives a dividend from another company to deduct that dividend from its income and reduce its income tax accordingly.
When people take money out of the bank, they have to pay them back with a little more and interest is why.<span />
Answer:
C. The federal government controls fiscal policy.
Explanation:
Fiscal policy are policies enacted by the government using its spending or taxes to stabilise the economy. There are two types of fiscal policy, expansionary and contractionary fiscal policy.
1. Expansionary fiscal policy is a policy that increases the money supply in an economy. They include :
A. Reduction of taxes - this increases disposable income and increases consumer spending which increases money supply.
B. Increased government spending- this is when government increases its spending usually on public projects.
2. Contractionary fiscal policy are policies that reduces the money supply in an economy. They include:
A. Increase in taxes- an increased tax reduces disposable income and money supply in an economy.
B. Reduced government spending - reduced government spending reduces money supply.
Monetary policy is policy controlled by the Federal Reserve.
I hope my answer helps you.
