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
ANEK [815]
3 years ago
12

Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The com

pany's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 45.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? a. –0.30% b. –0.35% c. –0.36% d. –0.44%
Business
1 answer:
sveticcg [70]3 years ago
3 0

Answer:

option b) -0.35%

Explanation:

For tax rate = 40%

After after-tax cost of debt = cost of debt × ( 1 - Rate )

= 7% × ( 1 - 0.40 )

= 4.20%

For tax rate = 45%

After after-tax cost of debt = cost of debt × ( 1 - Rate )

= 7% × ( 1 - 0.45 )

= 3.85%

Therefore, the change in cost of debt = 3.85% - 4.20% = -0.35%

Hence,

Correct answer is option b) -0.35%

You might be interested in
On a timeline, a goal that will be achieved in __________ years will be to the right of one that will be achieved in __________
kari74 [83]

Answer: D. 14;10

Explanation: The answer is D. 14;10 because a date to the right on a number line is older. This means that the first number has to be larger than the second number, and only D has this.

7 0
3 years ago
Read 2 more answers
1. What area of law protects the sale of a home?
Naily [24]

1 contract law

2 Something of value must be exchanged between the parties.

3 civil law

Why is the law important?

Laws are created for protect our general safety, and ensure our rights as citizens against abuses by other people, by organization's, and by the government itself. We have laws for help provide to our general safety.

How many kinds of Laws?

Natural or Moral Laws: Natural laws are the belief that certain laws of morality are inherent by human nature, reason, or religious belief.

  • Scientific Laws
  • Imperative Laws
  • Common Laws
  • Criminal Laws

Learn more about Law here brainly.com/question/6590381

#SPJ10

4 0
2 years ago
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 10,319 Accounts
garri49 [273]

Answer:

49 days

Explanation:

Account receivable turnover ratio = Net credit sales / Accounts receivable

Account receivable turnover ratio = $602,000 / $79,922

Account receivable turnover ratio = 7.53

Average collection period = 365/7.53

Average collection period = 48.47277556440903

Average collection period = 49

Thus, firm’s sales uncollected for year is 49 days.

8 0
3 years ago
Whats a good way to make more money from $9.00,
Ymorist [56]
Your answer: work more hours
7 0
3 years ago
A plant's fixed overhead costs total $500,000 for a year to produce 400,000 widgets, among other items. If machine‐hours are use
maxonik [38]

Answer:

$0.5

Explanation:

A plant's fixed total overhead cost is $500,000 for a year

400,000 widgets are required to be produced for this period

All processes require a 40,000 machine hours and the widgets use 16,000 hours out of the total hours

The first step is to calculate the fixed overhead application rate

= $500,000/40,000

= $12.5 machine-hour

The fixed overhead that is applied to the widgets can be calculated as follows

= $12.5 × 16,000

= $200,000

Therefore, the fixed overhead that is applied to each of the widgets produced can be calculated as follows

= 200,000/400,000

= $0.5

Hence the fixed overhead that is applicable to each widgets is $0.5

7 0
3 years ago
Other questions:
  • 1. Regarding general guidelines for the preparation of successful soups, which of the following statements is true?
    6·2 answers
  • French and german managers tend to use work-centered and _____ approach to leadership.
    8·1 answer
  • Welfare analysis: Basic conceptsIdentify whether each of the following statements best illustrates the concept of consumer surpl
    9·1 answer
  • Pete is a recent finance graduate who has two passions: music and finance. Upon graduation, he was offered an opportunity to joi
    10·1 answer
  • A stock has an expected return of 16 percent, the risk-free rate is 6.4 percent, and the market risk premium is 7.3 percent.Requ
    12·1 answer
  • What are the three choices that profit-maximizing firms have to make?
    9·1 answer
  • accounting A John Deere tractor acquired on January 4 at a cost of $120,000 has an estimated useful life of 25 years. Assume tha
    9·1 answer
  • Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost
    13·1 answer
  • Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30%.
    14·1 answer
  • An economist for the Brookings Institution argues that​ "a price on carbon would minimize the cost of steering economic activity
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!