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]
4 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]4 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
Muriel is giving a speech to the community's business leaders. She begins by stating, "Our community has been strong in the face
ch4aika [34]

<u>Answer:</u>

<u> Setting the mood and tone of her speech.      </u>

<u>Explanation:</u>

Muriel's approach to her speech prepares the mind of her listeners who are made up of business leaders who are known to usually have negative views about increasing taxes.

Thus, Muriel may be able to reach the emotions of her listeners <em>towards accepting her point of view</em>. This is evident by the the statement "Our community has been strong in the face of adversity, but we now face the most serious challenge in years", in which it likens the decreasing tax revenues to an adversity that should be overcomed; thus employing more support.

6 0
3 years ago
What are accounts payable and accounts receivable?
Amiraneli [1.4K]

payable = money owed by a company to its creditors

receivable = money owed to a company by its debtors.

7 0
3 years ago
Read 2 more answers
A Samoan handicraft company is expanding its market into Australia and New Zealand. The company's director of marketing is resea
Flura [38]

Answer:

Both A) and B)

Explanation:

Samoa is a very small country that consists of two islands, and its population is less than 200 thousand. New Zealand and Australia are therefore, massive countries compared to Samoa, with very different cultures.

The Samoan marketing director should research the geography of New Zealand and Australia because it is very different from Samoan geography. He should also complete a demographic analysis (income bracket, gender, and age fall under this category) in order to profile possible customers.

Finally, cultural aspects and rituals such as those described in point B should also be explored in order to know what to expect from local clients, providers, and business partners, and also, in order to know how to advertise the services. (culture is a crucial factor in determining the type of advertising a company employs).

3 0
3 years ago
Critically discuss if government interventions to alleviate poverty are sustainable over a long period of time
Nostrana [21]

I don’t believe that government interventions are sustainable over a long time.<span>
<span>Government interventions such as social welfares are in reality good policies to aid deprived people sustain themselves for a short period of time. Howeveri in order to entirely eradicate their poverty, they have to ultimately get a decent job to maintain their own living, otherwise, the Government just keep on spending and increases national debt over time.</span></span>

7 0
4 years ago
The equivalent annual cost method is most useful in determining: Group of answer choices the annual operating cost of an idle ma
jok3333 [9.3K]

Answer:

which one of two machines to acquire given equal machine lives but unequal machine costs.

Explanation:

equivalent annual cost (EAC) is used in determining which investment to make when the investments have different life spans.

When investments have different life spans, the net present value(NPV)  cannot be used in making decisions on investment.

EAC= \frac{rNPV}{1-\frac{1}{(1+r)^n} }

where r = interest rate

n = number of years

The decision rule is to invest in the investment with the higher EAC

5 0
3 years ago
Other questions:
  • What are the main purposes of a budget?
    10·2 answers
  • What is 90% ROI of $50,000 ?
    10·2 answers
  • Which of the following groups are worse off as a result of the union action in the northern state? Check all that apply. All wor
    11·1 answer
  • Assume your organization is experiencing an intruder attack. You have an intrusion detection system (IDS) set up. Which of the f
    14·1 answer
  • Why is it doing this?
    11·1 answer
  • When you get in a business, make a lot of money, and then get out, it’s referred to as a(n)
    6·2 answers
  • When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of: a. increasing
    7·1 answer
  • Parsa’s organics currently has $56 in debt for every $100 in equity. If the company were to use some of its cash to decrease its
    8·1 answer
  • Assume that Tommy and Michelle have an AGI of $107,000 before IRA deductions by either spouse. The AGI includes $10,000 that Mic
    6·1 answer
  • How do the roles of a subsidiary general manager differ in a wholly owned subsidiary in a developed country versus a joint ventu
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!