Answer:
Expense $23,000 for 2014
Explanation:
The computation is shown below:
Given that
Amount spent on investigating the TV rental stores is $14,000 in south Carolina
And, the amount spent on investigating the TV rental stores is $14,000 in Georgia is $9,000
So, the expenses that should be spent in the year 2014 is
= $14,000 + $9,000
= $23,000
The same is to be considered
Answer:
Harvesting an investment in a business
Four ways to harvest:
a. Outright sale of a company or the investment
b. Issue of Initial Public Offering (IPO)
c. Gradual elimination of a product, especially after the cow stage.
d. Withdrawal of additional investment and earning of profits.
Explanation:
These strategies can be employed by a business to reap the fruits from an investment. The purpose for the investment and the risk profile of the investor determines the actual strategy or combination of strategies used by the investor.
Answer:
D) The amount of annual interest paid to bondholders remains the same over the life of the bonds.
Explanation:
Since Dylan's coupon rate was lower than the market rate, then they will have to sell their bonds at a discount, i.e. at a lower price than face value. The price of the bond will be lower than the face value, but the actual coupon paid will remain the same during the 15 years.
Answer:
Pre-tax Cost of debt 7.35%
After-tax Cost of debt 4.78%
Explanation:
We will calculate the cost of debt which is the rate at which the present value of the coupon payment and maturirty matches with the market value.
Coupon payment =100 x 8% / 2 = 4
Face value= 100
market Value = P= 106
n= total payment = 14 years x 2 payment per year = 28
YTM = 3.6754508%
As this rate will be semiannually we multiply by 2
3.6754508 x 2 = 7.3509015 = 7.35%
Then we calcualte the cost of debt after tax:
pretax (1-t)
7.35 (1-.35) = 7.35(0.65) =4,7775 = 4.78%
Answer:
Disposable Income
Explanation:
dis·pos·a·ble in·come
/dəˈspōzəbəl ˈinˌkəm,dəˈspōzəbəl ˈiNGˌkəm/
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noun
income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.
"the rents of tenants in work reached 21 percent of disposable income"