1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tresset [83]
3 years ago
7

nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year

1 7% debentures, $300 million face value, due Year 11, effective rate $14.6% $ 188.6 $ 182.7 Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0% 267.9 239.2 Participating mortgages, $850 million face value, due Year 5, effective rate 8.7%, collateralized by Sears Tower and related properties 834.5 833.9 Various other long-term debt 12,444.2 16,329.2 Total long-term debt $ 13,735.2 $ 17,585.0 Required: How much interest expense did the company record during Year 2 on the 7% debentures
Business
1 answer:
cestrela7 [59]3 years ago
5 0

Answer:

The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600

Explanation:

As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.

We can calculate the Interest expense on 7% debtures as below

Interest Expense = Value of Debenture x Effective interest rate

Interest Expense = $188,600,000 x 14.6%

Interest Expense = $27,535,600

You might be interested in
What is important to remember when asking a person to be part of your employment network?
AVprozaik [17]

The important thing to remember when asking a person to be a part of your employment network is that to always to think that an individual has their own strength and weaknesses and it’s up to you to take note whether it is an asset to the company.

3 0
3 years ago
Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Wal
Andreas93 [3]

Answer:

the budgeted selling and administrative expenses for July is $64,100

Explanation:

The computation of the budgeted selling and administrative expenses for July is shown below:

= Budgeted selling & admin cost + (per unit sold × July units)

= $20,000 + ($9 × 4,900 units)

= $20,000 + $44,100

= $64,100

hence, the budgeted selling and administrative expenses for July is $64,100

We simply applied the above formula

3 0
2 years ago
The cost of using/borrowing money is reflected in the
spayn [35]
Interest rate? Repayment amounts? Length of time of loan? Smile on the face of the money lender? Might there be a little more to this quesition?
8 0
3 years ago
Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic
algol13

Options:

a. 14.58%  

b. 12.83%  

c. 15.46%  

d. 16.33%  

e. 16.92%

Answer:

Correct option is A.

14.58%

Explanation:

After-tax yield = pre-tax yield x (1- marginal rate)

and Taxable-equivalent yield = tax-exempt yield / (1- marginal tax rate)

Hence Taxable-equivalent yield =.105/(1-.28)  

=.105/.72=.14583333

=14.58 %

4 0
3 years ago
If the government wants to minimize the deadweight loss of taxation, which of the following items are good candidates for an exc
lesantik [10]

Answer:

A. emergency plumber services and  C.insulin.

Explanation:

From the list provided the best candidates for this would be emergency plumber services and insulin. That is because these are items or services that have a high supply but low demand due to the population of customers being a minority. This, therefore, causes market inefficiency which leads to deadweight loss. Other items like Coca-Cola and food mostly stay in equilibrium because products are made depending on the current demand and the customer population is the vast majority.

6 0
2 years ago
Other questions:
  • What step must be taken before investigators can determine if data tampering has occurred?
    7·1 answer
  • The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $11,000,
    14·1 answer
  • Jones, a consulting manager of Miller & Co., is considering membership on an audit client's board of directors. Jones does n
    13·1 answer
  • After being referred by a friend, Hedyeh attended a job interview. She didn’t feel it went well, but she was surprised when her
    15·1 answer
  • As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp. restricts the number of visits t
    12·1 answer
  • The PCAOB
    12·1 answer
  • Lego Company has used the FIFO method since it began operations in 2023. Lego changed to the weighted average method in 2026. Th
    11·1 answer
  • Top earning game of USA​
    9·1 answer
  • Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 p
    10·1 answer
  • Sandra wants to deposit $100 each year for her son. if she places it in an investment account that averages a 5% annual return,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!