The pre-tax cost of debt is yield to maturity of the debt.
The yield to maturity of debt is calculated as -
Yield to maturity = ]Coupon payment + ( Face value - Current price) / Number of years)] / [ ( Face value + Current price) / 2]
Here,
Coupon payment = $ 29.50 (semi-annual, thus 5.9% / 2 * 1000)
Face value = $ 1,000
Price = $ 1,000 * 108% = $ 1,080
Number of years = 12 ( semi-annual, thus 6 years * 2)
Pre-tax cost of debt = [ 29.50 + (1,000 - 1080/12)] / [ (1000+1080)/2 ]
Pre-tax cost of debt = 2.196 %
Annual pre-tax cost of debt = = 2.20 % * 2 = 4.40%
After tax cost of debt = ( 1 - tax rate ) * Annual pre-tax cost of debt
After tax cost of debt = ( 1 - 35%) * 4.40 %
After tax cost of debt = 2.86 %
No, because consumers equate quality of batteries with higher prices. With batteries consumers believe there is a price- quality relationship, it does not make the consumers, price insensitive. Also, there is no indication Energizer set a target price and adjusted cost and quality components to maintain wholesaler and retailer margins.
Answer:
$800
Explanation:
The computation of the tax saving from using LIFO is shown below:
= Cost of goods sold under LIFO × tax rate - Cost of goods sold under FIFO × tax rate
= $10,000 × 40% - $8,000 × 40%
= $4,000 - $3,200
= $800
By applying the above formula, the tax saving resulted from using the LIFO is $800 and the same is to be considered
Answer:
Oct 1
DR Cash............................................................................$20,000
CR Common Stock.........................................................................$20,000
Oct 2. No entry required
Oct 3
DR Office Furniture .....................................................$2,300
CR Accounts Payable................................................................$2,300
Oct 6
DR Accounts Receivable.............................................$3,600
CR Service Revenue - Realty services...................................$3,600
Oct 27
DR Accounts Payable ..................................................$850
CR Cash .......................................................................................$850
Oct 30
DR Salaries Expense ....................................................$2,500
CR Cash ..........................................................................................$2,500
This is true. Researchers suggest that ineffective reward and recognition strategies are factors responsible for the failures.
<h3>
What are global teams?</h3>
These are also referred to as the multinational teams. They are the specific type of team that is found in a workforce where the members may be people that are from different places.
By different places, we mean they are from different nations and their cultural backgrounds differ.
Read more on global teams here: brainly.com/question/5392895
