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Vanyuwa [196]
2 years ago
14

Salinas Corporation has net income of $15 million per year on net sales of $90 million per year. It currently has no long-term d

ebt but is considering a debt issue of $20 million. The interest rate on the debt would be 7%. Salinas Corp. currently faces an effective tax rate of 40%. What would be the annual interest tax shield to Salinas Corp. if it goes through with the debt issuance?
Mathematics
1 answer:
Alborosie2 years ago
8 0

Answer:

The annual interest tax shield to Salinas Corp would be of $560,000

Step-by-step explanation:

In order to calculate the annual interest tax shield to Salinas Corp if it goes through with the debt issuance we would have to calculate the following formula:

Annual Interest tax shield = Interest * tax

Interest = debt *rate of interest

Interest=$20 million * 0.07

Interest= $ 1.40 million

tax= 40%

Therefore, Annual Interest tax shield =$1.40 million * 0.40

Annual Interest tax shield = $560,000

The annual interest tax shield to Salinas Corp would be of $560,000

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3.27x+1.28y+1.83x−2.77y
Firdavs [7]

Answer:

5.1x - 1.49y

Step-by-step explanation:

We need to add or substract like terms.

like terms are the terms that have the same variable, in this case:

3.27x and 1.83x are like terms, and adding them we get:

3.27x + 1.83x = 5.1x (you add only the coefficients and the x stays the same)

we do the same for the terms with 'y':

1.28y and −2.77y are like terms, but in this case we must substract because of the − sign:

1.28y −2.77y = -1.49y

the final answer is the conjunction of the two results that we obtained:

5.1x - 1.49y

8 0
2 years ago
Which equation is the result of adding these two equations -2x+4y=17
Katyanochek1 [597]

The right answer is Option C.

Step-by-step explanation:

Given equations are;

-2x+4y=17   Eqn 1

3x-10y= -3   Eqn 2

Adding Eqn 1 and Eqn 2;

(-2x+4y)+(3x-10y)=17+(-3)\\-2x+4y+3x-10y=17-3\\3x-2x-10y+4y=14\\x-6y=14

The right answer is Option C.

Keywords: linear equations, addition

Learn more about linear equations at:

  • brainly.com/question/4939434
  • brainly.com/question/5002251

#LearnwithBrainly

4 0
2 years ago
Find 62(9) . Express your answer as a fraction in simplest form
Bas_tet [7]

Answer:

558/1

Step-by-step explanation:

7 0
2 years ago
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ABCD is a square. <br><br><br><br> What is the measure of angle BAC?
bezimeni [28]
Angle BAC is 45 degrees. The diagonal bisects angle BAD and since all angles in a square are 90 degrees, half of 90 is 45 degrees.
8 0
3 years ago
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Solve for y. 3=7(1-1)<br><br>(it isn't 2)​
laiz [17]

Answer:

First off, I can't solve for y, there is no y variable.

Second, 3 = 7 ( 1 - 1 ) is not true because 3 ≠ 0 ( 3 doesn't equal 0 ) :

3 = 7 ( 1 - 1 )

3 = 7 ( 0 )  ( Simplify Parenthesis )

3 = 0 ( Multiply 7 and 0 )

3 ≠ 0

4 0
3 years ago
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