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
Savatey [412]
2 years ago
14

J&R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturi

ty that is quoted at 106 percent of face value. The issue makes semiannual payments and has a coupon rate of 6 percent annually.What is the company’s pretax cost of debt?
If the tax rate is 35 percent, what is the aftertax cost of debt?
Business
1 answer:
g100num [7]2 years ago
6 0

Answer:

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Explanation:

PV = 106

PMT = 6/2 =-3

N = 16*2 = 32 semi annual

FV = -100

Semi annual yield = 2.72%

Annual cost of debt = 2.72%*2 = 5.44%

After tax cost of debt = 5.44*(1-0.35)% = 3.54%

Using Rate function in Excel or Financial calculator

You might be interested in
Mark manages a small family-owned amusement park. He believes the park can increase its profits if its owners will buy three foo
Talja [164]

Answer:

The correct answer is letter "E": influencer, gatekeeper, and decider.

Explanation:

As Mark's business is family-owned, it implies all the decisions are not made only by him. Then, in purchasing a food concession trailers he will have to let the other members of the family know about this decision.

Mark already decided Century Industries is the best option to take for the trailers but needs to influence his point of view to his family members. In other words, Mark will be the gatekeeper between his family business and Century Industries.

5 0
3 years ago
Saleh, an accountant, is the sole shareholder of Turquoise Corporation, a C corporation. Turquoise is a personal service corpora
VashaNatasha [74]

Answer: $82,500

Explanation:

Saleh's salary for fiscal year ending September 30 = $330,000

Salary that should be paid between October 1 - December 31, if the corporation is to continue to use it's fiscal year without negative tax effect.

To avoid negative tax effect, the Saleh's salary should be atleast equal to the amount being given for the fiscal year which ended in September 30.

October 1 - December 31 = 3 months

Saleh's monthly salary = total slary during fiscal year ÷ 12

$330,000 ÷ 12 = $27,500

October 1 - December 31 = $27500 * 3 = $82,500

3 0
3 years ago
A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are:____.
Vanyuwa [196]

A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are not perfectly positively correlated.

A stock portfolio is a collection of stocks that are invested in with the hope of making a profit. By putting together a diverse portfolio that spans various sectors individual  will be able to become a more resilient investor.

This is  because if one sector takes a hit, the investments  held by you  in other sectors aren’t necessarily affected.

When assembling a stock portfolio, it’s important to have the organizational goals in mind beforehand. That way the  decision-making process is guided by reason as opposed to emotion.

To know more about stock portfolio here:

brainly.com/question/13463364

#SPJ4

4 0
1 year ago
Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company
kozerog [31]

Answer:

The correct answer is:  bribery.

Explanation:

Bribery involves an illegal activity where a reward is offered from one party to another(s)  in order to provoke certain favorable behavior. Normally, the bribes are offered to public officials or high range executives to avoid legal responsibilities, or undesired laws or to change the payee point of view on a certain matter being discussed where substantial profits can be obtained.

6 0
3 years ago
Read 2 more answers
You find some public records about customer satisfaction in the company's archive. What type of data is this called?
Iteru [2.4K]

The  type of data is this called raw data when You find some public records about customer satisfaction in the company's archive.

Raw data collection is typically not ready for analysis, but when organized and cleaned, it becomes data. Processed data is the type of data that has been processed from raw data.

The term raw data is most commonly used to refer to information collected for research studies before the information is transformed or analyzed in any way. This term may apply to data that has been collected or cleaned once but has not been further transformed or analyzed.

A list of all purchases made at the store during the month, but without further structure or analysis. A video captured every second by a surveillance camera at night. The performance of all his students in the district for one quarter. List of all movies streamed by video streaming companies.

Learn more about  public records at

brainly.com/question/27583809

#SPJ4

8 0
1 year ago
Other questions:
  • How much money has to be invested at 5.1% interest compounded continuously to have $17,000 after 14 years?
    5·1 answer
  • The beginning share price for a security over a three-year period was $50. Subsequent year-end prices were $62, $58 and $64. The
    13·1 answer
  • Widely varying consumption ratios: work against the implementation of activity-based costing. indicate an out-of-control product
    11·1 answer
  • Carl jung's view of extroverted and introverted types serves as a basis of the ________.
    11·1 answer
  • Read the following sentence, and determine which technique is most applicable to improve its readability.
    12·1 answer
  • Hushovd Iron Works has collected the following data for its Thunderbolt line of products:Direct materials standard 10 pounds per
    6·1 answer
  • What is the shelf life of an item placed in a peel package or wrapped in nonwoven wrapper
    11·1 answer
  • On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. How would Fl
    8·1 answer
  • What role do entrepreneurs plays in the u.s economy?
    14·1 answer
  • The following selected data pertain to Flagship Corporation: Cash operating expenses July 1-31 Depreciation Merchandise purchase
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!