Outstanding debt of Home Depot trades with a yield to maturity of %. The tax rate of Home Depot is . What is the effective cost
1 answer:
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Answer:
55.58
Explanation:
Data provided in the question;
Initial demand per month, Q₁ = 3
Final demand per month, Q₂ = 5
Initial price, P₁ = $33,200
Final price, P₂ = $33,500
Now,
elasticity of demand using midpoint method is calculated as :
=
or
=
on substituting the respective values, we get
=
or
=
or
=
= 55.58