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4 years ago

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In 2008, expected inflation exceeded inflation. in 2009, inflation exceeded expected inflation. therefore the real interest rate

was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009.

1 answer:

Nastasia [14]4 years ago

4 0

Expensive cost with Trade interest

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Outstanding debt of Home Depot trades with a yield to maturity of %. The tax rate of Home Depot is . What is the effective cost

nydimaria [60]

Answer:

5.6%

Explanation:

A lot of information is missing, so I looked for similar questions to fill in the blanks:

"Outstanding debt of Home Depot trades with a yield to maturity of 8%.

The tax rate of Home Depot is 30%.

What is the effective cost of debt of Home Depot?"

the effective cost of debt or after tax cost of debt = debt's yield to maturity x (1 - tax rate) = 8% x (1 - 30%) = 8% x 0.7 = 5.6%

Interest is tax deductible, therefore, it creates a tax shield that lowers net interest expense.

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4 years ago

Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company tha

lora16 [44]

Answer:

Amoun of sales Revenue for the first quarter of 2019

Jan $120,000

Feb ( 120,000*1.05) 126,000

March ( 126,000* 1.05) <u>132,300</u>

<u>378,300 </u>

<u> Cash Receipt schedule for the first quarter of 2019</u>

Jan Feb March

Jan sales $84,000 24,000 12,000

Feb sales - 88,200 25,200

March sales <u> - </u> <u> - </u> <u>92,610</u>

<u>84,000</u> <u> 112,200</u> <u>129,810</u>

<u />

<u>Amount of Account Receivable as of MArch 2019</u>

Feb sale 10%* 126,000 $12,600

March sales( 20%* 132,300) + (10%*132300) <u>39,690</u>

<u> 52,210</u>

Explanation:

cash receipt

Jan Sales : Jan 70% * 120,000 = 84,000

feb 20%* 120,000 = 24,000

March 10% * 120,000 = 12,000

Feb sales : Feb 70%*126,000 = 88,200

March 20% * 126,000 = 25,200

April 10%* 126,000 = 12,600

March sales : March 70%* 132300 = 92,610

April 20%*132300 = 26,460

May 10%*132300 = 13,230

5 0

3 years ago

On January 1, 2020 (the date of grant), Concord Corporation issues 2,300 shares of restricted stock to its executives. The fair

ioda

Answer:

Explanation:

Date. Description/Account. Debit. Credit.

1/1/2020. Unearned Compensation. $69,000

Paid - in Capital in Excess of Par. $69,000

Common stock. $10,000

12/31/2020 Compensation Expense. $23,000

Unearned Compensation. $23,000

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3 years ago

A company paid Jen Rogers, its sole stockholder, a total of $25,000 in dividends during the current year. The entry needed to cl

sergiy2304 [10]

Debit Income Summary and credit Dividends for $25,000.

Answer: Option 5.

<u>Explanation:</u>

The balancing account of the company or an organisation is where the entries of the company are made and recorded so that at then end of the year the financial position of the company becomes clear to the stake holders of the company.

It is a double entry book keeping record where single entry is made on two sides of the book, the debit side and the credit side. This makes the book in balance for every entry. Entry on the debit and the credit side is made with the same amount to maintain the balance.

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3 years ago

The S&P 500 index delivered a return of 20%, -10%, 20%, and 5% over four successive years.

sladkih [1.3K]

Answer:

C) 8.75%

Explanation:

Number of periods = 4 years

Given return rates = 20%, -10%, 20%, and 5%

To obtain the arithmetic average annual return, add the return rates given for all periods and divide the sum by the number of periods.

$AAR = \frac{20-10+ 20+ 5}{4} \\AAR=8.75\%$

Over four years, the S&P 500 index delivered an arithmetic average annual return of 8.75%.

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3 years ago