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
earnstyle [38]
3 years ago
9

PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08.

If the bonds have a coupon rate of 7.25 percent, what is the after-tax cost of debt for PackMan if its marginal tax rate is 30 percent? Round your intermediate calculation to two decimal places & final percentage answer to three decimal places.
Business
1 answer:
Alja [10]3 years ago
4 0

Answer:

b. 8.225%

Explanation:

The rate formula will be used to solve this question.

Please note that the NPER represents the time value.

Where;

Present value is $754.08

Let's assume that the face value is $1,000

PMT= 1,000 x 7.25% ÷2

=$36.25

NPER= 9 years x 2

= 18 years

The formulae is therefore

Rate(NPER,PMT,-,PV,FV)

The value of the present value is negative.

a. The pretax would therefore be 11.75%

b. After tax cost of debt would be ;

Pretax cost of debt x (1 - tax rate)

11.75% x (1 - 30%)

11.75% x (1 - 0.03)

=8.225%.

You might be interested in
Eve was stressed as she had got transferred to italy. she decided to look at the brighter side of her relocation by telling hers
mr_godi [17]

Answer:

Emotion-focused.

Explanation:

4 0
3 years ago
Gross payroll for the employees of Bannister Enterprises totals $100,000 per week. From this must be withheld Social Security ta
bogdanovich [222]

Answer:

B) $77,350

Explanation:

Gross payroll=$100,000

Social Security taxes =6.20%

6.20/100×$100,000

=0.062×$100,000

=$6,200

Medicare taxes = 1.45%.

1.45/100×$100,000

=0.145×$100,000

=$1,450

federal and state income tax =15%

15/100×$100,000

=0.15×$100,000

=$15,000

Total Withholdings=

$6,200+$1,450+$15,000

=$22,650

Total employee compensation= Gross earnings-total withhold

=$100,000-$22,650

=$77,350

4 0
3 years ago
Which industry takes materials and transforms them into new tangible, physical products? A. Wholesaling B. Manufacturing C. Extr
Margaret [11]
Hello,

The answer is option A "<span>Manufacturing".

Reason:

Manufacturing is the process of taking old products and transforming them into better working items its kinda like a upgrade of the product.

Ex: A video game console into a better game console.....

The answer is not option A because wholesaling is the process that businesses use for commercials, bigger industries, any accessories to add on to their businesses in order to make them run better and to sell more of the product in order to make more money. Its not option C because a extractive industry is a industry that basically uses natural resources and extracts them. Its also not option D because a service could be anything not involving businesses, involving social businesses, etc... Therefore the answer is option B!

If you need anymore help feel free to ask me!

Hope this helps!

~Nonportrit </span>
6 0
3 years ago
Read 2 more answers
has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt. The market and book values of the debt are
Naddik [55]

Answer:

$926,073

Explanation:

Enterprise value=market capitalization+value of debt-cash

value of the firm=price-earnings ratio=11.8

earnings=net income

net income=profit margin*sales

net income=$697,000*6.8%=$47,396

11.8=market capitalization/$47,396

market capitalzation=11.8*$47,396=$559,272.80  

enterprise value=$559,272.80+$408,000-$41,200=$ 926,072.80  (approx  $926,073)

6 0
2 years ago
According to the _____________, many African Americans live in areas where there has been a reduction in work for low-skilled wo
enyata [817]

According to the <u>b. skills mismatch hypothesis</u>, many African Americans live in areas where there has been a reduction in work for low-skilled workers.

<h3>What is the skills mismatch hypothesis?</h3>

The skills mismatch hypothesis is an attempt to explain the reduction in work for low-skilled workers, especially African Americans.

The skills mismatch hypothesis argues that skill demands in urban labor markets increase over time.

Unfortunately, African Americans do not have the job skills and educational attainments, unlike other population groups, thereby causing a skills mismatch.

<h3>Answer Options:</h3>

a. residential segregation theory

b. skills mismatch hypothesis

c. deindustrialization perspective

d. "wage of whiteness" perspective

Thus, according to the <u>b. skills mismatch hypothesis</u>, many African Americans live in areas where there has been a reduction in work for low-skilled workers, and African-American men in particular often do not have the skills required to secure work in the current economy.

Learn more about the skills mismatch hypothesis at brainly.com/question/7493146

#SPJ1

8 0
2 years ago
Other questions:
  • Catherine often switches from project to project because she thinks she gets more done that way. She also doesn't get bored as o
    11·2 answers
  • Type the correct answer in the box. Spell all words correctly. What factor reflects the ‘cost of money’? The ‘cost of money’ is
    15·1 answer
  • As a function of management, "facilitating" is:
    8·1 answer
  • The price tag on a golf ball in 1975 read $0.20, and the price tag on a golf ball in 2005 read $2.00. The 1913 was 32.3, and the
    5·1 answer
  • Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco
    14·1 answer
  • In the world of marketing, _____ are ideas about products or services
    7·1 answer
  • MC 1
    8·1 answer
  • If the general education level within a country rises significantly over time, it is likely that: the country’s production possi
    15·1 answer
  • If you could choose anything to be? (must be in essay)​
    7·1 answer
  • An incomplete cost of goods manufactured schedule is presented below.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!