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aalyn [17]
3 years ago
13

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and an 8% coupon, semiannua

l payment ($40 payment every 6 months). The bonds currently sell for $894.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt
Business
2 answers:
Reika [66]3 years ago
7 0

Answer:

Firms after tax of debt is 6.87%

Explanation:

Firm's after-tax cost of debt is calculated using the RATE function as follow:-

=RATE(nper,pmt,pv,fv)*(1-tax rate)

=(RATE(20*2,40,-894.87,1000)*2)*(1-25%)

=6.87%

Alexus [3.1K]3 years ago
5 0

Answer:

9%

Explanation:

The cost of debt is the yield to maturity of the bond. Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity. it is long term return which is expressed in annual rate.

Number of payment = n = 40 payments

Coupon Payment = $1,000 x 8% /2 = $40

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( $1,000 - $894.87) / 40 ] / [ ($1,000 + $894.87) / 2 ] = 0.045

Yield to maturity = 4.5% semiannually = 9% annually

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Dennis_Churaev [7]

Answer:

Promotion.

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The aim of promotion is to increase awareness, create interest, generate sales or create brand loyalty. Promotion is also one of the elements in the promotional mix or promotional plan.

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4 years ago
What is the expected impact of increased security measures imposed by the federal government on airlines and consumers? Instruct
Kipish [7]

Answer:

It will increase price for consumers, as well as cost for airlines (due to increased demand & supply)

Explanation:

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If federal government imposes more safety measures on airlines & consumers. Cost for airlines rise due to increased security expenditures, so supply decreases (shifts leftwards). Customers might feel safer amidst more personal & organisational security measures, so demand increases (shifts rightwards).

Both these factors lead to increase price for consumers, as well as cost for airlines

3 0
4 years ago
Assume that inflation is high, which of the following functions of money would not be used
Lubov Fominskaja [6]

Answer:

D. store of value is the correct answer.

Explanation:

5 0
3 years ago
Dubberly Corporation's cost formula for its manufacturing overhead is $32,000 per month plus $50 per machine-hour. For the month
alisha [4.7K]

Answer:

Activity  Variance= $ 58,590 Adverse

Explanation:

<em>The overhead activity variance is the difference between the actual manufacturing overheads and the standard cost of the actual machine hours </em>.

                                                                                                          $

7,750 hours should have cost ( 7,750× $50)                           387,500

Actual manufacturing overheads                                            <u>446,090</u>

Activity  Variance                                                                     <u>  58,590 Adverse</u>

<u />

6 0
3 years ago
the cheap foreign ______ argument says that trade protection is required to ensure that cheap imports do not flood u.s. markets,
GalinKa [24]

The cheap foreign Labour argument says that trade protection is required to ensure that cheap imports do not flood u.s. markets, dragging down prices of goods and u.s. wages. This is further explained below.

<h3>What is foreign Labour?</h3>

Generally, Those who work in a nation other than their own but have no intention of permanently relocating there are considered foreign workers since they do not have citizenship in the country where they are employed.

In conclusion,  The idea that trade protection is needed because of cheap imports flooding the market and driving down prices and U.S. wages is known as the "cheap foreign labor" argument. More detail about this is provided below.

Read more about Labour

brainly.com/question/14643266

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8 0
2 years ago
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