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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:

c. −$80.

Explanation:

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Economic profit = Total revenue - Cost of seeds - Earning foregone

where,

Total sales revenue is $300

Cost of seeds is $130

And, the earning foregone is

= 10 hours × $25

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So, the economic profit is

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3 years ago
Consider the stock of ocean tuna which is massively overfished. it is rational for an individual to exploit the resource rather
Aleksandr [31]
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3 0
2 years ago
Below are various states of financial distress: 1. defaulting on a principal payment on debt 2. restructuring debt 3. liquidatin
anastassius [24]
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2 years ago
Budgeting helps consumers reach their financial goals by helping them do which of the following?
Firdavs [7]

Answer:

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Explanation:

7 0
3 years ago
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Bad White [126]

Answer:

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Explanation:

we need to build the following:

    A              B           C

           units    COST

Aynor          9           =93 + 80*B2 + POWER(B2;2)*7

Spartanburg 31           =147 + 20*B2 + POWER(B2;2)*3

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We stablish that we want to minimize c3

changing cell b2 and b3

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3 years ago
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