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stepladder [879]
3 years ago
5

The June Bug has a $340,000 bond issue outstanding. These bonds have a coupon rate of 6.25 percent, pay interest semiannually, a

nd sell at 101.2 percent of face value. The tax rate is 35 percent. What is the amount of the annual interest tax shield?
Business
1 answer:
andre [41]3 years ago
8 0

Answer:

the amount of the annual interest tax shield = $7437.5

Explanation:

First we need to ckeck the vaelus given on the problem.

$340,000 bond issue outstanding

rate of 6.25%

sell at 101.2% of face value

tax rate is 35 percent

pay interest semiannually

so the amount of the annual interest tax shield will be given by:

Coupon amount paid in a year = $340000 x 6.25 / 100 = $21250

 amount of the annual interest tax shield = $21250 x 35 / 100 = $7437.5

therefore we have that the amount of the annual interest tax shield is $7437.5

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Answer:

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The director ought to set up an expense and advantage examination or ascertain NPV (net present estimation) of the venture (capital planning investigation) to introduce it before the leader of the organization. The extra costs identified with extra creation ought to likewise be thought of. This investigation would support the supervisor and the president in dissecting that whether they should buy the new machine or not.

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Money managers:
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Just read the text. I'm 100% sure. Text below.

7 0
3 years ago
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Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Agoria, a nation with a pure market
Marta_Voda [28]

Answer:

Two weaknesses as consultant can be identify: The economy experiences economic fluctuations, and people with no resources to sell could starve

Explanation:

In a pure market economy, the allocation of resources is based on purely the dynamics between supply and demand. If our economy is closed (there is no imports nor exports) and there is not different actors (such as government) and all trade goods are perfect (they are not public or semi-public goods), then the market will efficiently allocate all the resources. Nevertheless, this is not the case, and with an open economy and the existence of imperfections, any external impact will cause economic fluctuations, and those workers with no demandable offer will not be hired, and potentially will be out of the market.

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3 years ago
The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicate
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Answer: $164,300

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Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

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= $164,300

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Doc Xpress has an in-house staff of 35 employees who provide transcriptions of phone and video conferences for a range of client
siniylev [52]

Answer:

external threat

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