Examlex
The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 34%?
Budget Line
A graphical representation of all possible combinations of two goods or services that can be purchased with a given income and prices, identical to the concept of a budget constraint but rephrased.
Duality
Alternative way of looking at the consumer’s utility maximization decision: Rather than choosing the highest indifference curve, given a budget constraint, the consumer chooses the lowest budget line that touches a given indifference curve.
Marginal Utilities
Refers to the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.
Lagrangian Multiplier
A method employed in constrained optimization issues to identify the function's maximum or minimum while adhering to certain restrictions.
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