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Mademuasel [1]
2 years ago
12

The Holmes Company's currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue n

ew bonds at par that would provide a similar yield to maturity. If the marginal tax rate is 40%, what is Holmes' after-tax cost of debt?
Business
1 answer:
malfutka [58]2 years ago
6 0
Gghh Rey hhrbbwb Holmes
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Sandra has good credit and qualifies for a home loan. Sandra's loan could negatively affect her credit score if she _____.
ale4655 [162]
Does not make a down payment
8 0
3 years ago
Eve's Apples opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability poli
Nutka1998 [239]

Answer: 18,000

Explanation:

Liability policy:

Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ liability\ policy}{Period\ of\ policy}

Insurance\ expense\ per\ month=\frac{36,000}{18}

                                                            = 2,000

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 2,000

= 24,000

Prepaid insurance balance for liability policy on 31 Dec, 2018:

= Prepaid Insurance for liability policy - Insurance expense 2018

= 36,000 - 24,000

= 12,000

Crop damage policy:

Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ crop\ damage\ policy}{Period\ of\ policy}

Insurance\ expense\ per\ month=\frac{12,000}{24}

                                                            = 500

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 500

= 6,000

Prepaid insurance balance for crop damage policy on 31 Dec, 2018:

= Prepaid Insurance for crop damage policy - Insurance expense 2018

= 12,000 - 6,000

= 6,000

Therefore,

Total prepaid insurance balance on 31 Dec 2018:

= Prepaid insurance balance for liability policy on 31 Dec, 2018 + Prepaid insurance balance for crop damage policy on 31 Dec, 2018

= 12,000 + 6,000

= 18,000

7 0
3 years ago
If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem
nexus9112 [7]

Answer:

"Capital rationing" would be the appropriate answer.

Explanation:

  • Capital rationing is a systematic process for allocating remaining cash through various alternative investments, thus growing the bottom line of a financial institution.
  • It consists of calculating profitability economic indicators across all projects as well as choosing the best ventures which result in the highest present value especially when associated.

8 0
2 years ago
No im tired of doing the work lol
Yanka [14]

Answer:

watch funny video

Explanation:

4 0
3 years ago
On January 1, a company purchased a five-year insurance policy for $3,300 with coverage starting immediately. If the purchase wa
marissa [1.9K]

Answer:

a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.

Explanation:

The adjusting entry is shown below:

Insurance expense Dr $660 ($3,300 ÷ 5 years)

          To Prepaid insurance

(Being the insurance expense is recorded)

here we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets

Therefore the option a is correct

7 0
3 years ago
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