The major output of financial accounting is a set of statements including the.

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu

just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula

a. The pretax cost of debt is

= 3.65% × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

= 4.745%

4 0

3 years ago

Diane heads an event management company called Venus Inc. The company encourages an innovative and creative approach to work. Di

UkoKoshka [18]

Answer:

c. Diane should target a vision for a desired future.

Explanation:

As Diane heads the event management of the company she can create a creative work approach for the company by the creation of a future of planned actions.

<u>And can target the vision statement of the company that is more innovative and concrete. Thereby making changes in the future mission of the company.</u>

3 0

3 years ago

What is the logic behind co-locating purchasing personnel with internal customers?

almond37 [142]

There are certain advantages that the organization can understand from co-locating <span>purchasing personnel with internal customers</span>. The primary huge advantage is low expenses of task. In addition, the organization will give enhanced administrations to the organization since the organization will distribute to each customer a faculty in charge of giving them the administrations they require. This additionally has an arrangement of getting a great administration by the clients since they get customized treatments. The most noteworthy advantage related with this is the organization will improve its reputation and draw in various customers.

6 0

2 years ago

What will happen to the price and quantity of Japanese goods in the US if the dollar depreciates causing the costs of producing

Helga [31]

The prices of Japanese goods will increase.

<h3>Economic Principles of Demand and Supply </h3>

Following the principles of demand and supply, the higher the price, the higher the quantity supplied (all other factors remaining constant).

Recall that cost of production for Japanese goods has also increased according to the question. When prices increase, suppliers sometimes want to take advantage to create even additional inflation in order to get additional profit. Hence they put out more goods at the instance of increased prices.

See the link below for more about the law of supply:
brainly.com/question/4803223

3 0

2 years ago

During which phase of the communication process is it most likely that the entire communication process may repeat? A: feedback

Alexandra [31]

The correct option is A.
Feedback refers to the receiver's response to the message he has received. The receiver may have to write the response down and send it to the sender who read it and interpret the message; thus repeating the whole process of communication again.

8 0

3 years ago