Answer: After-tax cost of debt is 7.8%.
Explanation:
Given that,
coupon = 10% (outstanding bonds)
yield to maturity (YTM) = 12%
marginal tax rate = 35%
The after-tax cost of debt:
After-tax cost of debt = YTM (1 - Tax rate)
= 12% (1 - 0.35)
= 0.12 (0.65)
= 0.078
= 7.8%
YTM is used in the after-tax calculation because it represents the true pre-tax cost of debt to the issuer.
Therefore, the after-tax cost of debt is 7.8%
Explanation:
The journal entry is as follows
On February 1, 2020
Land Dr $36,400
To Common Stock $14,000
To Paid- in capital in excess of par value - common stock $22,400
(Being the common stock is issued for land)
The computation is shown below:
For common stock
= 2,800 shares × $5 per share
= $14,000
And, the remaining balance is credited to the paid in capital in excess of par value i.e $22,400
Answer:
No doubt the question is pointing at the term described,which is operating strategies concern
Explanation:
Operating strategies concern involves action plans developed at the operation strategic level to align business resources and capabilities to the long-term goals of the business.
Majority of the action plans initiated at the operational side of the business are short-term in nature,hence operational strategies concern aimed at bridging the gap between the long-term goals of top management and the short-term objectives of junior managers by developing long-term plans for operations.
Top management use certain performance measures to gauge the progress made in operating strategies concern.
Answer:
The correct answer is letter "A": Should be.
Explanation:
From the efficiency perspective, we shall consider the relationship between the benefits and the costs. If we subtract the cost from the benefits and the result is positive, we could say that it is convenient to continue with the activities of the operations being carried out.
In that case, Jones's benefits are (100) but his cost is Smith's damages (60). Then:
100 - 60 = (+)40;
which implies Jones <em>should be</em> allowed to play his opera music.
Answer:
Brand licensing Strategy
Explanation:
Brand licensing is an agreement whereby a company is given the permission to produce or market products using the brand of an original owner. It involves leasing out or renting out a brand name to another company. It is the process whereby a licensor gives permission to licensee to use the licensor brand name in the licensee products and services. In this scenario, Harley Davidson, the licensor allows gives manufacturers his brand name to be use in their products in exchange of royalties of the sales of the licensee products.
