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Savatey [412]
3 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]3 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

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Strategic management is about formulating strategies that align an organizations internal capabilities with external opportuniti
dexar [7]

Answer:

Mark Parker has been very effective as a strategist for the following reasons:

Explanation:

  1. He has been able to keep Nike's brand equity.
  2. His policies on HR has generated an effect which translated to increased motivation for his employees to commit to the attainment of the company's objectives
  3. A strategist must be able to make plans and execute them. Nike's strategy is a customer-centric one. Mark was able to, regardless of the economy, ensure that Nike's products were consumer-centric and that the business units in charge of each aspect of Nike's operations were able to deliver their best.

Cheers!

7 0
3 years ago
48. What does management say they are doing to assure the public that the financial information is reliable
WARRIOR [948]

Answer:

Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.

Explanation:

There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.

6 0
3 years ago
Which of the following identifies a change in the technological environment that could affect the success of a business?
podryga [215]

The statement that identifies a change in the technological environment that could affect the success of a business is option B. The option B is A company develops a new battery that lasts twice as long as its predecessor.

The development of technology is currently running so rapidly, unconsciously maybe every day technology develops. In this day and age, technology is very important for humans, so that it can be said that human life today cannot be separated from technology. The rapid development of technology has made almost all human work easier because almost all human work is assisted by technology. Day by day, technology is more varied, more innovative, more able to help human work. The development of this technology brings so many positive impacts, but technology also has a negative impact.

The following is the impact of technological developments on business:

  • Speed ​​up the production and distribution process
  • The exchange and delivery of information becomes easier and faster
  • Make it easier to get information related to finance, competitors, consumer tastes, and target market
  • Make it easier to expand your business
  • Make it easy in terms of promotion
  • Make transactions easier because of digital payments

You can learn more about development of technology here brainly.com/question/13743788

#SPJ4

8 0
1 year ago
You were asked to investigate extremely high, unexplained merchandise shortages at a department store chain. Classify each of th
Nutka1998 [239]

Answer:

(a) INDICATOR OF FRAUD

Explanation:

The reason is that the supervisor has an outside business setup related to the department's setup which gives rise to a conflict of interest.

8 0
3 years ago
Why microeconomics is useful in business decision making? Explain​
adelina 88 [10]

Explanation: The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce. <33

7 0
3 years ago
Read 2 more answers
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