Answer:
$4,420,000
Explanation:
Data provided as per the question
Bond issue value = $13,000,000
Tax rate = 34%
The computation of present value of the tax shield is shown below:-
Present value of tax shield = Tax rate in percentage × Bond issue value
= 34% × $13,000,000
= $4,420,000
Therefore for computing the present value of the tax shield we simply multiply tax rate in percentage with bond issue value.
Answer:
$280,894.67
Explanation:
Present value can be found by discounting the cash flows at the discount rate.
Present value can be calculated using a financial calculator:
Cash flow for year one = 5,600
Cash flow for year two = $48,200
Cash flow for year three = $125,000 + $250,000 = $375,000
Discount rate =16%
Present value = $280,894.67
I hope my answer helps you
Answer:
step 1: click instead> Chart
step 2: click th3 chart type and then double click th3 chart you want.
step 3: in th3 worksheet that appears, replace the placeholder data with your own information.
step 4: when you insert a chart, small buttons appear next to the upper right corner.
step 5: when finished, close th3 worksheet
H) Recession is when economic activity slows down.