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3 years ago

Telecom Systems can issue debt yielding 5 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt?

Business

1 answer:

Alla [95]3 years ago

3 0

Answer:

after-tax cost odf debt 0.035 = 3.5%

Explanation:

the debt provides a tax shield for companies, as the interest expense, decrease the net income. Interest decrease income and therefore, the tax income associate with the income.

So the cost of debt with taxes is lower, because it lower the income tax expense

the formula will be:

cost of debt ( 1 - tax-rate)

in this case:

0.05 ( 1 - 0.3) = 0.05 x 0.7 = 0.035

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Billy-Bob owns a condo in Seattle, and a farm in Yakima. His older brother, Bobby-Lee, has some severe health problems and is un

Eduardwww [97]

Answer: B. Once Bobby-Lee dies, Judy will own the "fee simple" title to the property.

Explanation:

In the Life Estate arrangement, a person is granted use and ownership of a property for as long as they are alive. When they die however, if a Remainder also known as Remainder- man is named, then the property rights transfer to the Remainder- man.

The Remainder-man then gets access to the property and owns in to the highest extent of the law which in common law countries such as the United States, is the Fee Simple title ownership. This gives them the right to basically do what they want with the property.

Bobby-Lee therefore gets the rights to the property but once he dies, his sister Judy will own a fee simple title to the property.

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3 years ago

4. Why do people sometimes use credit to pay for items instead of just using cash?

olganol [36]

Most people wanted to build there credit up that’s why they use credit cards

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2 years ago

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of

julia-pushkina [17]

Answer:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region 8,515,000 8,200,000 $375,000

$18,890,000 $18,650,000 $375,000 $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $4,300,000 $4,000,000 $300,000

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$8,515,000 $8,200,000 $375,000 $(60,000)

b. Memo to Randi Wilkes, Vice President

To: Vice President, Production

From: FC

Subject: Budget Performance Report—For the Month Ended June 30

Date: July 3, 2021

The above-mentioned subject refers.

The production division incurred $315,000 more costs than budgeted. The extra costs are reflected in the increasing cost of producing light duty motors in the Western Region. The overall increase is caused by the regional differences in Chip fabrication and Electronic Assembly.

There is a need to review production activities with these two production processes with a view to reducing costs.

Regards,

Explanation:

a) Data and Calculations:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region (g) (h) $(i)

$(j) $(k) $(l) $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $(a) $(b) $(c)

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$(d) $(e) $(f) $(60,000)

Delmar Company

Budget Performance Report—Supervisor, Chip Fabrication

For the Month Ended June 30

Cost Actual Budget Over Budget (Under) Budget

Factory wages $1,450,000 $1,200,000 $250,000

Materials 1,575,000 1,600,000 $(25,000)

Power and light 945,000 900,000 45,000

Maintenance 330,000 300,000 30,000

$4,300,000 $4,000,000 $325,000 $(25,000)

a. = $4,300,000

b. = $4,000,000

c. = $300,000 ($325,000 - $25,000)

d. = $8,515,000 ($4,300,000 + 2,575,000 + 1,640,000)

e. = $8,200,000 ($4,000,000 + 2,500,000 + 1,700,000)

f. = $375,000 ($300,000 + 75,000)

g. = $8,515,000

h. = $8,200,000

i. = $375,000

j. = $18,890,000 ($4,200,000 + 6,175,000 + 8,515,000)

k. = $18,650,000 ($4,250,000 + 6,200,000 + 8,200,000)

l. = $375,000

8 0

2 years ago

At December 31, Tremble Music had account balances in Accounts Receivable of $300,000 and in Allowance for Uncollectible Account

anzhelika [568]

Answer:

The balance of uncollectible accounts after the adjustment will be $15,000

Explanation:

On December 31, the balance of the accounts receivable is $300,000 and on same data it is suggested that the 5% of the account receivable will be not be collected.

So, the balance of the uncollectible accounts will be computed as:

Uncollectible accounts = Account receivable balance × % which will not collected

where

Account receivable balance is $300,000

% which will not be collected is 5%

Putting the values above:

= $300,000 × 5%

= $15,000

NOTE: The allowance for uncollectible accounts of $1,000, already credited, so will not be considered again.

8 0

3 years ago

Windsor Company took a physical inventory on December 31 and determined that goods costing $191,500 were on hand. Not included i

WINSTONCH [101]

Answer:

$237,630

Explanation:

Windsor report as its December 31 inventory:

= Inventory in hand as per physical count + Goods purchased from P corporation under FOB shipping basis + Cost of goods sold to A company under FOB destination basis

= $191,500 + $24,510 + $21,620

= $237,630

Therefore, the amount to be reported by Windsor company is $237,630.

7 0

2 years ago