Answer:
a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Explanation:
we must first determine the bond's yield to maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2] = {30 + [(1,000 - 930)/60]} / [(1,000 + 930)/2] = 31.17 / 965 = 3.23% x 2 = 6.46%
after tax cost of debt = 6.46% x (1 - tax rate) = 6.46% x (1 - 22%) = 6.46% x 78% = 5.04%
Finance is the functional area of business that is responsible for finding the best sources of funds and the best ways to use them. So the correct option is (d).
What is a Functional area?
Functional area describes a way of segmenting an organization into distinct parts, each of which will act as a fully functional unit carrying out the specified functions. This means that a segmented unit like this accomplishes a specific organizational goal that can be distinguished from the role of other segments. The human resource department, a division within the organization that is divided from other functional areas by the particular obligations that are distinctive to just the human resource department, is an example of such a division within an organization.
Therefore correct answer is (d).
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Answer:
$111,000
Explanation:
net income for Skysong during 2022:
total revenues $748,000
<u>- total expenses ($637,000)</u>
net income $111,000
Net income is not affected by new common stocks being issued, since no interests is paid.
It affects dividends because without net income dividends cannot be distributed, but dividends do not affect net income,
Retained earnings are increased by net income after taxes (= $111,000 x 79% = $87,690) - distributed dividends $36,000 = $51,690
<span>There are two possible outcomes that are dependent on the size of absence for consumer purchasing. If the size of absence is negligible, a noticeable supply and demand relation curve will be observed, decreasing prices so that others will buy more. If the absence is large, or in totality, then companies can not meet their baseline operations costs, which will cause many to lose their jobs, and ultimately lead to a recession, and a probable depression.</span>