Answer:
Annual Dividend Amount is approximately $0.85
Explanation:
Dividend yield = Annual Dividend Amount / Current selling price
∴ Dividend yield * Current selling price = Annual Dividend Amount
Annual Dividend Amount = $36.75 * 2.3%
=$36.75 * 0.023
=$0.84525
Annual Dividend Amount = $0.85 (approximately)
Answer:durable goods are products that do not need to be purchased often, whereas non-durable goods are products that expire more quickly.
Explanation:
Answer:
Explanation:
The main reason for this is to try and position their brand or product in the best way possible within the market. Perceptual maps allow marketers to see how individuals are perceiving the competitive brands as well as their own brands, the markets use this information to determine which position will best benefit their brand in the market and hopefully beat the competition.
Answer:
To calculate the after-tax cost of debt, multiply the before-tax cost of debt by <u>(1 - tax rate)</u>.
Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is <u>= 10.20% x (1 - 45%) = 5.61%</u>.
At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?
<u>B. 4.47%</u>
pre-tax cost of debt = bond's yield to maturity
approximate YTM = {120 + [(1,000 - 1,329.55)/15] / [(1,000 + 1,329.55)/2] = 98.03 / 1,164.775 = 0.08416 = 8.416%
approximate after tax cost of debt = 8.4% x (1 - 45%) = 4.62 = 4.62
since I used the approximate yield to maturity, my answer is not exact. That is why I have to look for the closest available option.
