Equilibrium in a market is___________. A. All of the above are correct. B. the best price and quantity that can exist in a marke
t. C. a situation in which there are no inherent forces that produce change. D. the actual price and quantity that will exist in a market. E. the natural state of affairs in the market.
1 answer:
Answer:
A. All of the above are correct
Explanation:
Equilibrium is where quantity supplied equals quantity demanded.
Equilibrium ;
Is the best price and quantity that can exist in a market.
Is a situation in which there are no inherent forces that produce change.
Is the actual price and quantity that will exist in a market.
Is the natural state of affairs in the market.
I hope my answer helps you.
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Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
