Explain why the investor's required return on debt is not equal to the corporation's cost of debt, and explain why the investor's required return on equity is not equal to the corporation's cost of equity
What will be an ideal response?
Answer: Interest expense is a deduction from the firm's taxable income. The firm can deduct interest expense before taxes, thus reducing the firm's tax burden. If a business is in the 34% tax bracket, taxes are reduced by 34 cents for every dollar of interest expense. A 10% interest rate thus become (10% × (1-.34)) or 6.6% after taxes. This causes the after-tax component of debt in the cost of capital to be less than the required return of the firm's creditors.
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Which statement is not true about judgmental sampling?
A) It does not allow direct generalizations to a specific population. B) It may be useful if broad population inferences are not required. C) Each population element has a known and equal probability of selection. D) An extension of the technique involves the use of quotas.
Explain why some critics worry that American multinationals are causing countries around the globe to lose their individual identities. Give an example of the "Americanizing" of the world's cultures
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The most intense form of change is reactive and incremental. 2. There is a difference between theories of change and theories of changing. 3. Survey feedback is one of the most commonly employed organizational development techniques. 4.Team building has a strong influence on team performance. 5.Stress has been rising at the workplace due to organizational change.
Variances from standard rarely conflict with nonfinancial performance measures, such as employee satisfaction
Indicate whether the statement is true or false