Answer:
a) $0.5145 million
b) $7.35 million
Explanation:
Given:
Permanent debt outstanding = $35,000,000
Expected marginal tax rate = 21%
a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.
To find annual interes tax shield use the formula below:
Annual interest tax shield =Total par value of Debt × interest rate × tax rate
= $35,000,000 × 7% × 21%
= $35,000,000 × 0.07 × 0.21
= $514,500
Annual interest tax shield = $0.5145 million
b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?
Use the formula:
Present value of the interest tax shield = Annual interest tax shield /loan interest rate
= $514,500 / 7%
= $7,350,000
present value of the interest tax shield = $7.35 million
Answer:
The correct answer is ENRON.
Explanation:
Going back to December 2, 2001, is going back to one of the biggest scandals in economic history. That day, the energy company Enron declared bankruptcy. First global energy distributor, invoiced 100,000 million dollars annually.
Jeffrey Skilling, the mind behind accounting, did his last master move badly. Before the bankruptcy they were seen coming, he resigned his position alleging family reasons and sold the shares he had in the company. Four months later came bankruptcy. Supposedly, he didn't know anything about the critical situation of the company. He did not strain.
In 2004 he was charged with about thirty charges, including operating with confidential information, by selling about 60 million dollars in Enron shares before bankruptcy, deceiving the auditor or conspiracy.
Answer:
Worksite Analysis
Explanation:
Based on the information provided within the question it can be said that the final major component of the OSHA guidelines are Worksite Analysis. This component refers to the various actions that provide all the information needed to help an individual recognize and understand all the dangers and potential hazards of the workplace environment.
This retailer's Fill rate was 88 percent.
Fill rate, also called order fulfillment fee, is the percentage of orders that you could ship from your to-be-had inventory with no misplaced sales, backorders, or stockouts. it is a very good mirrored image of your potential to meet purchaser calls and the overall effectiveness of your eCommerce operations.
The fill rate formula is simple. You divide the range of purchaser orders shipped in full through the number of patron orders positioned. whilst you multiply that number by 100, you'll study your fill price in the form of a percent.
Fill rate refers to the share of consumer calls that is met via on-the-spot inventory availability, without backorders, stockouts, or lost income. without a doubt positioned, it's an indication of how nicely you are able to meet patron calls at any given time.
Learn more about the Fill rate here: brainly.com/question/25793394
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