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Juliette [100K]
3 years ago
11

A $1,000 par bond is currently selling for $1,100. It has a 9% coupon rate, fifteen years remaining to maturity, and pays intere

st semi-annually. If the firm's tax rate is 35%, what is the after-tax cost of debt
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

$54.17 per bond

Explanation:

the journal entry to record the issuance of the bond:

Dr Cash 1,100

    Cr Bonds payable 1,000

    Cr Premium on bonds payable 100

The bond premium amortization using straight line amortization:

$100 / 30 = $3.33 per coupon payment

journal entry to record coupon payment:

Dr Interest expense 41.67

Dr Premium on bonds payable 3.33

    Cr Cash 45

the yearly interest expense = $41.67 x 2 = $83.34 x (1 - tax rate) = $83.34 x 0.65 = $54.17

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Samuel needs to import information from Excel to an Access table, but he wants to ensure that if the source table is
emmasim [6.3K]

Answer:

B

Explanation:

7 0
3 years ago
Colby and carleton own a business. most of their friends and colleagues would say colby, who manages the business on a daily bas
Ad libitum [116K]

Colby would rate low on openness to experience, while Carleton would rate high on this dimension based on the five-factor model.

Since Colby’s thinking is conventional, he would most likely stick with the common and proven methods in handling a business, thus, the rationale on his low rating to openness to experience.

7 0
2 years ago
Justice Enterprises is evaluating the purchase of a new computer net system would cost $24,000 and have a useful life of Syears.
Sergeeva-Olga [200]

Answer:

closest to: B) $7777

Explanation:

NPV ( net presetn value) cashflow - investment

<u>cost savings present value (ordinary annuity):</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C   $8,500

time         5 years

rate  0.12

8500 \times \frac{1-(1+0.12)^{-5} }{0.12} = PV\\  

PV $30,640.5977  

salvage value present value:

\frac{salvage}{(1 + rate)^{time} } = PV  

Salvage  $2,000  

time   5

rate  0.12

\frac{2000}{(1 + 0.12)^{5} } = PV  

PV   1,134.85  

NPV: 30,640.60 + 1,134.85  - 24,000 = 7,775.45

4 0
3 years ago
A rectangular floor measures $a$ feet by $b$ feet, where $a$ and $b$ are positive integers with $b &gt; a$. An artist paints a r
DENIUS [597]

The number of possibilities that are there for the ordered pair is 2.

<h3>Calculation and Parameters
</h3>

Because the unpainted part of the floor covers 1/2 of the area, then the painted rectangle covers 1/2 of the area as well.

Given that the border width is 1 foot, the dimensions of the rectangle are a-2 by b-2.

Making an equation:

ab= 2((a-2)(b-2))

ab= 2ab-4a-4b+8

ab-4a-4b+8=0

If we apply Simon's Favorite Factoring Trick,

ab-4a-4b+16= 8

(a-4)(b-4)= 8

Since b > a, then we have the possibilities

(a-4) = 1 and (b-4) = 8, or (a-4) = 2 and (b-4) = 4.

(5, 12) or (6,8) which gives us 2 possibilities.

Read more about possibilities here:

brainly.com/question/25870256

#SPJ1

8 0
2 years ago
A Whopper combo meal costs $3.00 and gives you an additional 15 units of utility; a meal at the Embassy Suites costs $29.00 and
Olenka [21]

Answer:

be indifferent between the two meals

Explanation:

Marginal utility is the additional satisfaction received from consuming an additional unit of a good or service. Marginal utility is the additional utility derived from consuming one more unit of a good. the consumption decision is to consume more units of a good that gives the higher utility per good.

Marginal utility per good = marginal utility / price of the good

Whopper combo meal = 15 / 3 = 5

a meal at the Embassy Suites = 145 / 29 = 5

both meals have the same marginal utility of 5. She would be indifferent between consuming the two meals

8 0
3 years ago
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