The correct answer would be :
The Four C's Of Lending
Invest in a checking account so that you can have immediate access to your money
Invest in some “safe” securities so that you can get the highest rate of return
Invest in a security that carries higher risk and a higher rate of return
Answer:
Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer. ... VAT (Value-Added Tax) is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers, distributors and retailers all collect the value added tax on taxable sales.
Answer:
1.103%
Explanation:
Data provided in the question:
Market debt-equity ratio = 0.65
Corporate tax rate = 40%
Interest on paid its debt = 7%
Now,
Debt ÷ Equity = 0.65
or
Debt = 0.65 × Equity
Weight of Debt = Debt ÷ (Debt + Equity)
or
= ( 0.65 × Equity ) ÷ ( 0.65 × Equity + Equity )
= 0.65 ÷ 1.65
= 0.3939
also,
Tax shield = Corporate tax rate × Interest paid on its debt
= 0.40 × 0.07
= 0.028
= 2.8%
Therefore,
The interest tax shield from its debt lowers Summit's WACC by
= Weight of Debt × Tax shield
= 0.3939 × 2.8%
= 1.103%
The interest tax shield from Summit Builders' debt, given a debt-equity ratio of 0.65, the interest rate of 7%, and the tax rate of 40%, lowers its WACC by 1.82%.
The Interest Tax Shield from debt is the reduction in tax expense achieved by offsetting interest expenses on debt against taxable income. The formula for calculating interest tax shield is Interest Paid * Tax Rate.
In the context of this question, the interest paid can be calculated as the product of the debt-equity ratio and the interest rate on the debt. Using the provided information, the calculation would be as follows:
So, the interest tax shield from Summit's debt lowers its Weighted Average Cost of Capital (WACC) by 1.82%.
#SPJ2
Answer:The expected rate of return on a bond is the total return that an investor can expect to receive from holding the bond. To calculate the expected rate of return, we need to consider both the interest payments and any capital gains or losses from buying the bond at a discount or premium.
In this case, the bond is selling at a discount of $15 ($1,000 - $985). Since the bond pays 6 percent annual interest semiannually, it means that the bond pays $30 ($1,000 x 6% / 2) in interest every year.
To calculate the expected rate of return, we need to add the interest payment to the capital gain or loss. The capital gain or loss is the difference between the face value ($1,000) and the selling price ($985). In this case, the capital loss is $15.
So, the total return on the bond is the sum of the interest payment and the capital gain or loss: $30 + (-$15) = $15.
To calculate the expected rate of return, we divide the total return by the selling price of the bond and multiply by 100 to get a percentage. In this case, the expected rate of return is ($15 / $985) x 100 = 1.52%.
Therefore, the bond's expected rate of return is 1.52%.
ᕙ༼◕ ᴥ ◕༽ᕗ Hope this helps
B. if you want to buy insurance against damages to your home
C. if you want to buy insurance against car accidents
Medical coverage provides an insurance against hospital stays and surgeries for serious illnesses.
Property Insurance provides an insurance against damages to your home. And
Vehicle Insurance provides an insurance against car accidents.
Hence if you want to buy insurance against hospital stays and surgeries for serious illnesses, then medical coverage will be useful.
Hence Correct answer is A.
b. Logistics Section Chief
c. Operations Section Chief
d. Planning Section Chief