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SVEN [57.7K]
4 years ago
11

Electronic Products has 22,500 bonds outstanding that are currently quoted at 101.6. The bonds mature in 8 years and pay an annu

al coupon payment of $90. What is the firm's aftertax cost of debt if the applicable tax rate is 34 percent?
Business
1 answer:
valentinak56 [21]4 years ago
5 0

Answer:

5.75%

Explanation:

to determine the effective cost of the debt, we can use an excel spreadsheet and the IRR function:

  • present value = -1,016
  • payments 1 - 7 = 90
  • payment 8 = 1,090

effective interest rate = 8.71%

we can also calculate the answer using the annuity and present value formula:

1,016 = [90 x ({1 - [1 / (1 + i)⁸]} / i)] + [1,000 / (1 + i)⁸]

but it's much more complicated and the result is the same.

since the effective interest rate = 8.71%, then the after tax rate = 8.71% x (1 - 34%) = 8.71% x 0.66 = 5.7486% ≈ 5.75%

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Irma does not agree with the standard operating procedures adapted for the new project. However, she discusses the items with th
xxMikexx [17]

Answer:

Accommodating

Explanation:

Accommodating is the term in business which means resolving the conflict through placing the concern of the others above of its own at the workplace.

For example, if the person is not agreeing to a point where all the other members of the team are agreeing on that, so accommodating is the kind of intention, which make the business successful by making that person agreeing on that.

So, in this case, Irma is not agreed with the procedure of operating for the new project. Therefore, in order to make the new operations smooth, Irma needs to accommodate himself.

6 0
3 years ago
XYZ Corp. recorded service revenues of $150,000 in 2016, of which $80,000 were on credit and $70,000 were for cash. Moreover, of
german

Answer: $75,000

Explanation:

Net Cash inflow refers to the actual cash that came into the company less the cash that went out.

Net cash inflow = Cash inflow - Cash outflow

= Cash from sales + Cash from receivables collection - cash wages

= 70,000 + 35,000 - 30,000

= $75,000

6 0
3 years ago
1. Which type of business proposal or report is most likely to capture the attention of your manager? Explain your choice using
Tomtit [17]

Explanation:

A business proposal is a written document in which the offers and proposed plans given to the clients are listed. This proposal or report is got checked by the manager before sending to the client. Even if the simple report has to be presented to the manager, it must have some points that capture the attention of your manager. The proposal or report must cover every aspect which is being discussed.

- The writing of the proposal or report must be persuasive.

- It should be precise.

- The tone of the proposal must be professional.

- Important points should be marked bold or italic.

- Paragraphing should be used.

- Bullets, lists and Tables should be used where needed.

- The document should have a visual appeal.

All such things will make the document appealing and will capture the attention of your manager.

8 0
3 years ago
Groups transform individuals into functioning organizational members communicating and enforcing ______ expectations.
Lady_Fox [76]
<span>Role Role expectations is what we are expected to do based on certain assigned role. This is taken from the social and psychological concept of Role Theory. Which says each thing we do is according to specific roles that have already been carved out and we act out according to the expectations of such role for example the duties and obligations of a wife to a husband or that of a father to his children</span>
4 0
3 years ago
Wims, Inc., has current assets of $3,400, net fixed assets of $32,500, current liabilities of $2,900, and long-term debt of $6,9
ss7ja [257]

Answer:

$26,100

Explanation:

Shareholders' equity = Total asset - Total liability

Shareholders' equity = (3,400 + 32,500) - (2,900 + 6,900)

Shareholders' equity = 35,900 - 9,800

Shareholders' equity = 26,100

Hence, the value of the shareholders equity is $26,100

7 0
3 years ago
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