Answer:
Mojo Mining
The aftertax cost of debt is:
= 3.6%.
Explanation:
a) Data and Calculations:
Bonds outstanding value = $1,040
Maturity period = 18 years
Payment of interest = semiannual
Coupon rate = 5.54% per annum
Coupon rate per half-year = 2.77% (5.54%/2)
Company's tax rate = 35%
Aftertax cost of debt = 5.54% (1 - 0.35)
= 5.54% * 0.65
= 0.036
= 3.6%
b) Mojo Mining's aftertax cost of debt is a product of its cost of debt of 5.54% and the difference between tax savings, which results from the deduction of interests on the debt.
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Answer:
Present value is $2918.88
Explanation:
Given Data:
Amount won=$2,040,000
Number of years=76 years
Interest rate=i=9%=0.09
Required:
Present value=?
Solution:
Formula
Where:
FV is the future value=$2,040,000
PV is the present value
i is the interest rate=0.09
n is the number of years=76
Present value is $2918.88
Are there other options? BEcause the information you provided, you would NOT be able to say that the mean is different than 7,454 because the sample is within 1 standard deviation from the proposed mean.
Answer: answer is not in the option.
Correst answer -Noble must pay South Bank on May 1, Year 2, when the note matures, $84,800
Explanation:
Interest accrued = Principal(amount borrowed) x rate x time
= $80,000 x 12 x 6/12
= $4,800
Amount to be paid on may 1 st the next year (year 2 )=Amount borrowed + interest accrued
= $80,000 + $4,800 = $84,800
Noble must pay South Bank on May 1, Year 2, when the note matures the sum of $84,800