Writes in their own language as used colloquially.
Answer:
The correct answer is 5.72%.
Explanation:
According to the scenario, the given data are as follows:
Coupon rate = 5.2%
Coupon rate (semiannual) = 2.6%
par value (FV)= $1,000
Coupon payment(pmt) = $1,000 × 2.6% = $26
Time period = 16 years
Time period ( semi annual) (Nper)= 32
Sell value ( PV) = $945.32
So, we can calculate the rate by using financial calculator.
Attachment is attached below
So, YTM Semiannual= 0.02863 or 2.86%
And YTM annual = 2.86% × 2 = 5.72%
Answer and Explanation:
The computation is shown below:
a. The price per share under MM proposition is
= Debt ÷ Difference in Number of shares
= $1,330,000 ÷ (155,000 - 105,000)
= $26.60
b. The value of the firm under each plans is
For All equity plan
= Share price × Number of shares
= $26.6 × 155,000 shares
= $4,123,000
For Levered plan
= All equity plan value + Debt × Tax rate
= $4,123,000 + $1,330,000 × 0%
= $4,123,000
Answer:
the tool reimbursements should not be treated as income on the service technicians.
Explanation:
Any Reimbursement cannot be taxed because there is no income generated if actual reimbursement is made. So in the given case Tools Reimbursement received by the Technicians are not taxable because it is the amount spend by them for providing the service and actual reimbursement is made. No income has been generated in this.
This practice will reduce the income of the government by two side. One is on the side of the company we are allowing them with a business expenses thereby reducing their tax liability by reducing the profits and other is the same cannot be charged to tax from the side of the worker because it is just a mere reimbursement of actual expenses.
