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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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Most insurance companies will waive surrender charges in the event EXCEPT:
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Answer:

Most insurance companies will waive surrender charges in the event except the person who fake the injury or death

4 0
1 year ago
Pricing objectives refer to :A. reconciling the prices charged by an organization to the values set forth in its business missio
enot [183]

Answer:

Specifying the role of price in an organization's marketing and strategic plans.

Explanation:

Pricing objectives can be described as the goals which puts an organization through on ways to place the prices of their products to potential customers. It makes the products more appealing to the customers. Pricing objectives involves determing the appropriate price for a particular good or service.

Pricing objectives helps companies in improving their market shares this is achieved by cutting down the cost of their products to drive customers to purchase them thereby giving the business a high competitive edge in the market.

6 0
3 years ago
Which of the following businesses is NOT possible to be rivaled?
Luba_88 [7]

Answer:

A. an electric company

Explanation:

Among all the options given above, it is an electric company that cannot be rivaled due to the fact that, all household definitely need electricity in-order to power their home. Due to the nature of the company and how capital intensive it is, it would always be in demand by the people.

7 0
3 years ago
According to the Census Bureau, in October 2016, the average house price in the United States was $27,258. 6 years earlier, the
krek1111 [17]

Answer:

Annual increase is $1,108.4

Explanation:

In 2016, average price was $27,258.6

In 2010, average price was $20,608

Average increase in 6 years = $27,258.6 - $20,608 = $6,650.6

Annual average increase = $6650.6/6 = $1,108.4

5 0
3 years ago
QUESTION 1
babunello [35]
1.) A
2.) True
3.) False
4.) C
5.) C
6.) True
7.) True
8.) C
9.) True
10.) True
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