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3 years ago

What is the after-tax cost of debt for a firm if it pays at 21% of tax rate, and pays 15% on its debt

Business

1 answer:

FinnZ [79.3K]3 years ago

5 0

Answer:

= 11.85%

Explanation:

After tax cost of debt = (1 - tax rate) x debt

(1 - 0.21) x 15%

0.79 x 15% = 11.85%

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What type of arrangement(s), if any, would avoid double taxation for Wendall's and Shirley's endeavor? Choose the best answer if

musickatia [10]

Answer:

An s corporation or a limited liability company, but not a corporation.

Explanation:

5 0

3 years ago

Felix Incorporated has just exchanged 1,250 shares of $65 par-value preferred stock for a parcel of land advertised for a price

Anna11 [10]

Answer:

Dr Land account 90,000

Cr Preferred Stock account 81,250

Cr Paid-in Capital in Excess of Par Value - Preferred Stock account 8,750

Explanation:

When preferred stock is sold, the transaction must be recorded at par value in the preferred stock account. Any amount of money received over par value, must be recorded in the paid-in capital in excess of par value - preferred stock account.

7 0

3 years ago

An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the averag

tresset_1 [31]

Answer:

112 customers per day

Explanation:

For computing the needed capacity requirement, first we have to find out the new utilization rate which is shown below:

Capacity cushion = 100% - average utilization rate

25% = 100% - average utilization rate

So, the average utilization rate is 75%

Now the needed capacity requirement is

Utilization rate = Average output rate ÷ Maximum capacity × 100

75% = 84 ÷ Maximum capacity × 100

So, the maximum capacity is 112 customers per day

We simply applied the above formula to determine the needed capacity requirement

8 0

3 years ago

Two investors have the following pattern of expected returns (Before-Tax Cash Flows): Investment A: Y1: $5,000; Y2: $10,000; Y3:

Arada [10]

Answer:

Investment A = 11.089%

Investment B = 12.772%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The internal rate of return can be calculated using a financial calculator

For investment A,

Cash flow in year zero = -$110,000

Cash flow in year 1 = $5,000

cash flow in Y2 = $10,000

cash flow in Y3 = $12,000

Cash flow in Y4 = $15,000 + $120,000 = $135,000

Irr = 11.089%

For investment B,

Cash flow in year zero = -$120,000

Cash flow in year one = $2,000

cash flow inY2: $4,000

cash flow in Y3: $1,000

cash flow in Y4: $5,000 + $180,000 = $185,000

IRR = 12.772%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

4 0

2 years ago

The result of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was to:____

postnew [5]

Answer: d. Make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense.

Explanation:

In December 1997, signatories accounting for around 70% of World Trade adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions which stated that countries must install Legislative laws that would prohibit the bribing of foreign officials as well as strict penalties for parties who engage in such. This was done to ensure that the playing field was level so to speak instead of one company getting special treatment because they paid for it.

One concern however was that the Convention did not consider Facilitating Payments a criminal offence which means that it could be used as a bypass for the bribery of foreign officials to still happen.

8 0

3 years ago