The government deficit for 2020 is $200 million and there is a $500 million national debt. If the interest paid on the debt is 10%, how much of a budget surplus will the government need to acquire for 2021 to prevent an increase in debt?
es )
A)
The government will have to cut taxes or cut spending by $30 million.
B)
The government will have to increase taxes or cut spending by $70 million.
C)
The government will have to cut taxes or increase spending by $70 million.
D)
The government will have to cut taxes or increase spending by $50 million.

What is the connection between digital transformation and customer experience

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805