Answer:
To calculate the after-tax cost of debt, multiply the before-tax cost of debt by <u>(1 - tax rate)</u>.
Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is <u>= 10.20% x (1 - 45%) = 5.61%</u>.
At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?
<u>B. 4.47%</u>
pre-tax cost of debt = bond's yield to maturity
approximate YTM = {120 + [(1,000 - 1,329.55)/15] / [(1,000 + 1,329.55)/2] = 98.03 / 1,164.775 = 0.08416 = 8.416%
approximate after tax cost of debt = 8.4% x (1 - 45%) = 4.62 = 4.62
since I used the approximate yield to maturity, my answer is not exact. That is why I have to look for the closest available option.
Answer: I hate Trump and would make him eat tortilla chip vertically :/
Explanation:
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Exhibitive.
b) Transit.
c) Direct mail.
d) Outdoor.
e) Print.
And the correct answer is the option A: Exhibitive.
Explanation:
To begin with, the term known as <em>"Exhibitive Media"</em>, in the field of marketing and business, refers to the strategy used by the companies whose approach is in the point of sale marketing. This type of strategy focus on exhibiting the product to the costumer the closer as possible so it will generate an impulse on the client of buying the product without having it thought before seeing the product. A very common example of this strategy is the situation in where the supermarkets fill their lines to the cashier with other retails that have product that are attractive at first sight.
Answer: test marketing stage
Explanation: In simple words, it refers to the market development stage in which an organisation distribute their product to a specified audience, that belongs to their target market, for knowing their review on the product.
This testing is done before the product is launched to the complete market. It helps the organisation to evaluate whether they should launch the product or not and if they should make some changes in it before doing so.
Hence from the above we can conclude that in the given case the company is in test marketing stage.
Answer:
correct option is a. Land
Explanation:
given data
land costing = $400,000
subsidiary 2017 = $450,000
land credit = $50,000
solution
While when we consolidating land that will appear in the group asset at the amount of 450,000.
so here the appreciation in the value of land is not realized gain .
so that there will be credit to land with 50,000
so correct option is a. Land
