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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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A store has two different coupons that customers can use. One coupon gives the customer $15 off their purchase, and the other co

andrey2020 [161]

Answer:

16.25;

g(f(x)) ;

76 ;

f(g(x))

Explanation:

For 15 off

f(x) = x - 15

For 35% off

g(x) = (1 - 0.35)x = 0.65x

g(x) = 0.65x

A.)

For the $15 off coupon :

f(x) = x - 15

f(x) 40 - 15 = 25

For the 35% coupon :

g(x) = (1-0.35)x

g(x) = 0.65(25)

g(x) = 16.25

B.)

Applying $15 off first, then 35%

Here, g is a function of f(x)

g(f(x))

Here g(x) takes in the result of f(x) ;

For the $140 off coupon :

f(x) = x - 15

f(140) = 140 - 15 = 125

For the 35% coupon :

g(125) = (1-0.35)x

g(124) = 0.65(125) = $81.25

C.)

x = 140

g(x) = 0.65x

g(140) = 0.65(140)

g(140) = 91

f(x) = x - 15

f(91) = 91 - 15

f(91) = 76

D.)

Here, F is a function of g(x)

f(g(x))

f(x) = (0.65*140) - 15

6 0

3 years ago

Sidewinder, Inc., has sales of $658,000, costs of $334,000, depreciation expense of $79,000, interest expense of $44,000, and a

Lynna [10]

Answer:

The addition to retained earnings is $84,790.

Explanation:

Sales of $658,000

Costs of ($334,000)

Gross Income $324,000

Depreciation expense ($79,000)

Income before interest and Tax $245,000

Interest expense ($44,000)

Income before tax $201,000

Tax 21 % ($42,210)

Net Income $158,790

Addition to retained Earning = Net Income - dividend paid

Addition to retained Earning = $158,790 - $74,000

Addition to retained Earning = $84,790

3 0

3 years ago

Practice Question 24 At the beginning of the year, Powers Company purchased a piece of machinery for $50,000. It has a salvage v

Naya [18.7K]

Answer:

$5,000

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

Depreciation expense = (Original cost - residual value) ÷ (useful life)

= ($50,000 - $5,000) ÷ (9 years)

= ($45,000) ÷ (9 years)

= $5,000

In this method, the depreciation is same for all the remaining useful life

The units are ignored in this method as it is used when units of production method applies

5 0

3 years ago

Which selling method is most likely to irritate potential customers?

ser-zykov [4K]

Answer:

"Cold calling" or "cold messaging" is of the most irritating methods to the potential customers.

This is because cold calling tends to be very long. It is time wasting and frustrating to the listener, especially when they are not interested in the advertisement, acknowledgement of the products. In addition, this method has the characteristic of unprofessional and like spammer. Cold calling makes every listener the same and it can make the potential customers irritated feeling they are not respected by the firm.

6 0

4 years ago

Read 2 more answers

Companies that outsource face certain risks when they hire other organizations to perform certain services. a particular risk a

ioda

Companies that outsource face certain risks when they hire other organizations to perform certain services. a particular risk a company might face is that there is no easy way of exiting the outsourcing agreement.

An organization is a group of people working together, such as a neighborhood association, charity, union, or business. The word organization can be used to refer to a group or enterprise or the act of forming or establishing something.

An organization is an official group of people such as a political party, corporation, charity or association. Most of these vocational schools are provided by volunteer organizations. ... Reported by the International Labor Organization. Synonyms: Synonyms for groups, companies, associations, associations, and organizations.

Learn more about organizations here:brainly.com/question/19334871

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2 years ago