Answer:
d. 5.14%.
Explanation:
Calculation to determine the best estimate of the after-tax cost of debt.
First step
Based on the information given we would make use of rate formula in excel.
=rate(nper,pmt,-pv,fv)
Where,
nper= coupon every six months for 20 years = 40 coupon payments
Pmt =$1000*7.25%*6/12=$36.25
Pv = $875
Fv =$1000
Let plug in the formula
=rate(40,36.25,-875,1000)=4.28% semiannually
=4.28% *2=8.56% annually
Now let calculate the after tax cost of debt using this formula
After tax cost of debt=8.56%*(1-t)
Where,
t represent tax rate of 40%
Let plug in the formula
After tax cost of debt=8.56%*(1-0.4)
After tax cost of debt=5.14%
Therefore the best estimate of the after-tax cost of debt is 5.14%
Answer:
AND
Explanation:
AND condition is used when we need to check for the condition in which both the given conditions are satisfied.
Here from the statements provided in the question, it can be observed that the vendor must have offices in both the cities i.e the condition should be followed that the vendor has the office in one city AND the other city.
It is a way of managing a companies relationship with current and future relationships. Keeping a good name with your customers treating them right, in most business the customer is always right even if they are wrong.
Answer:
Production= 45,000 units
Explanation:
Giving the following information:
Raw materials, June 1: 46,000 units
Raw materials, June 30: 51,000 units
Purchases of raw materials during June: 185,000 units
<u>First, we need to calculate the raw material used in production:</u>
<u></u>
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 46,000 + 185,000 - 51,000
Direct material used= 180,000
<u>Now, the production for the period:</u>
Production= 180,000/4
Production= 45,000 units
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