Answer:
$3,675
Explanation:
Calculation to determine the amount of the annual interest tax shield
Using this formula
Annual interest tax shield=Outstanding face value*Coupon rate*Tax rate
Let plug in the formula
Annual interest tax shield = $250,000 *.07 *.21
Annual interest tax shield= $3,675
Therefore the amount of the annual interest tax shield is $3,675
Answer:
E) if the firm evaluates these projects and all other projects at the new overall corporate wacc, it will probably become riskier over time.
Explanation:
Before the merger, Audaco would have rejected any project with an IRR of less than 12% (more risky investments) while Careco only required a 10% IRR (less risky projects). But after the merger the combined WACC will be lower than Audaco's, but higher than Careco's. Therefore, the new merged company will start accepting more risky projects and that tendency will continue over time. Eventually, the company's WACC will have to adjust and increase, and the cycle will continue.
Answer:
Compensation expense of $510,000 will be recorded each year 2021-2024
Explanation:
Stock option gives a right to employee to buy an amount of company stock at a given price in specified time period. It is charged as expense according to the fair value of the stock option every year until exercise-able date.
Compensation expense of $510,000 will be recorded each year 2021-2024
All the working is made in an MS Excel file and answer is made accordingly. Please find it.
Answer:
The correct word for the blank space is: public.
Explanation:
A public corporation has sold stock through an<em> Initial Public Offering </em>(IPO) to the public and that stock is currently traded on a <em>public stock exchange</em> or the <em>Over-The-Counter</em> (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.
Answer:
The correct answer to the following question will be Option C (Adoption).
Explanation:
The adoption stage falls under the Change Management Continuum System educational process. This explains the change which has shown a significant or positive impact on the corporation.
The mental process by which a person moves from the first hearing about such an invention to actual adoption is the acceptance process for either a new product.
There are five stages are in the Adoption stage:
- Product awareness
- Product interest
- Product evaluation
- Product trial
- Product adoption
Therefore, Option C is the right answer.