1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andreas93 [3]
3 years ago
5

Hi Tech Products has 35,000 bonds outstanding that are currently quoted at 102.3. The bonds mature in 11 years and carry a 9 per

cent annual coupon. What is the firm's aftertax cost of debt if the applicable tax rate is 35 percent?
Business
1 answer:
Xelga [282]3 years ago
6 0

Answer:

aftertax cost of debt =5.63%

Explanation:

fisrt we need to know the formula for the yield to maturity

Yield to maturity (YTM)

YTM= ( I+(F-P)/n ) / ( 0.6P +0.4F)

YTM=  (9 + ( 100-102.3) / 11 ) / (0.6*102.3 + 0.4*100)

YTM= 0.0867

YTM= 8.67%

after taxes we have...

8.67% (1-0.35%)

=0.0563

=5.63%

You might be interested in
Major Supply, Inc., is seeking a judgment against Les Danforth on the basis of a representation made by Dirk Coleman, in Danfort
san4es73 [151]

Answer:

C. If Major Supply gave credit in reliance upon the misrepresentation by Coleman, Danforth is a partner by estoppel.

8 0
4 years ago
A deposit of $90 is placed into a college fund at the beginning of every week for 5 years. The fund earns 3% annual interest, co
laila [671]

Answer:

$25,249.50

Explanation:

Deposit at the beginning of every 6 month (A) = 90

Time period (t) = 5

n = 52

Rate (r) = 3% = 0.03

So, the net amount in the account right after the last deposit is as follows:

= A * [(1+r/n)^(n*t) - 1 / r/n] * (1 + r/n)

= 90 * [(1+0.03/52)^(52*5) - 1 / 0.03/52] * (1 + 0.03/52)

= 90 * [(1.16178399147 - 1 / 0.000577] * (1+0.000577)

= 90 * 280.3882 * 1.000577

= 25249.498559226

= $25,249.50

6 0
3 years ago
The gaol of a country with a healthy economy is to have _____ equal to zero
ladessa [460]
I would say the goal of a healthy economy is to have zero unemployment because that would mean that all able bodied men and women were gainfully employed which would enable them to contribute to the economy by producing wealth plus also consuming goods for their social reproduction with the resulting two-fold benefit to the economy.
6 0
3 years ago
Kevin is an agent for Lookout Mountain Accountants, Inc. On Lookout Mountain's behalf and at its request, Kevin pays Nathan for
Arada [10]

Answer:

(d) Reimbursement

Explanation:

A  reimbursement is a repayment  for cash you've just spent. At the point when you travel for work, you get a repayment for your business related costs, similar to inn bills and boarding passes, however you'll need to pay for that outing to the bazaar yourself.

The cost repayment process enables bosses to take care of workers who have gone through their own cash for business-related costs. At the point when representatives get a cost repayment, commonly they won't be required to report such installments as wages or pay

4 0
3 years ago
Please select the word from the list that best fits the definition
aleksandrvk [35]

Answer:

Explanation:

so u want the definition of what?

5 0
3 years ago
Read 2 more answers
Other questions:
  • All of the following strategies can help a project team to develop realistic time estimates for project activities EXCEPT:
    13·1 answer
  • A firm has sales of $68,400, costs of $42,900, interest paid of $2,100, and depreciation of $6,500. The tax rate is 34 percent.
    8·1 answer
  • Stanford Simmons, who recently sold his Porsche, placed $10,000 in a savings account paying annual compound interest of 6%. A.)
    9·1 answer
  • Key Corporation has 40,000 shares of $10 par value common stock outstanding and retained earnings of $820,000. The company decla
    8·1 answer
  • On May 1, Year 1, Benz’s Sandwich Shop loaned $16,000 to Mark Henry for one year at 8 percent interest. Required a. What is Benz
    11·1 answer
  • Which was the major reason for the creation of corporations?
    6·1 answer
  • What are the key choices a company must make before reaching the final decision to go global?
    12·1 answer
  • Use the following information for Jake Company: Sales Revenue .......................................... $2,000,000 Interest/Div
    14·1 answer
  • In this assignment, you'll use a word processor to create a newsletter based on the following scenario: Suppose that you are a s
    11·1 answer
  • Is interest on loan an expense or a liability....Please help​
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!