Business, 28.11.2019 21:31, mariamsakayanthebest
Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay (-select-outstanding, secured, or new ) debt. because interest is tax deductible, the relevant cost of (-select-outstanding, secured, or new) debt used to calculate a firm's wacc is (-select-after-tax or before-tax) cost of debt, rd (1 – t). the (-select after-tax or before-tax) cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on (select after-tax or before-tax) cash flows. it is important to emphasize that the cost of debt is the interest rate (select-outstanding or new) debt, (-select-outstanding or new) debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past (select-relevant or irrelevant) because we need to know the cost (select-outstanding, secured or new) capital. for these reasons, (-select-current yield rate, yield to maturity, or coupon rate) on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than (-select-current yield rate, yield to maturity, or coupon rate). (select-current yield rate, yield to maturity, or coupon rate) on the company' (-select-long or short) term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to (-select-long or short) term projects
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 10:10, manny2275
True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity
Answers: 3
Business, 22.06.2019 12:30, dtrdtrdtrdtrdrt1325
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
Business, 22.06.2019 19:00, xojade
1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals
Answers: 1
Business, 22.06.2019 20:10, cyndy50
While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.
Answers: 2
Do you know the correct answer?
Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay (-select-outstandi...
Questions in other subjects:
English, 17.10.2019 21:10
