Answer:
5.4%
Explanation:
Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation
Face value of bond = coupon amount / interest rate
1000 = 80 / 8%
Therefore 900.9 = 80 / revised interest rate
multiply both sides by the 'revised interest rate
revised interest rate x 900.9 = 80
Hence, revised interest rate = 80 / 900.9 = 9%
Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)
where:
kd = Cost of debt
t = tax rate
Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%
Answer:
Urgency / Postponement leads to customer inelastic demand of ice melt.
Explanation:
Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price
Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,
Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price
Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.
Answer:
B. Less than 10%
Explanation:
An addition increase by 10 % in the physical capital stock (which is a factor of production consisting of man made goods like machineries and so on) will lead to a less than 10% increase in the Gross domestic product. This is due to the law of diminishing marginal utility which talks about the consumption increases marginal utility from each additional unit declines. Thus, the more the physical capital stock increases, the GDP will increase at a decreasing rate.
Answer:
1
Explanation:
A factory requires employees to work in unsafe conditions.
According to a recent survey, 80 percentage of local police agencies has experienced a "measurable increase" in the reporting of computer and electronic crimes.
What is electronic crimes?
Tajikistan, Bangladesh, and China are the nations with the least cyber-security in the world, according to our research. Tajikistan had the greatest rates of crypto miner assaults (5.7%), PCs experiencing at least one local malware attack (41.16%), and users being attacked by banking malware (4.7%).
Some internet crimes target tangible objects like computers or servers. These offenses include copyright infringement, IPR violations, hacking, virus transmission, cyber and typo squatting, computer vandalism, and DDOS attacks.
To know more about electronic crimes, refer:
brainly.com/question/4511174
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