State chartered banks are required to become members of the federal reserve system.

Theâ€‹ after-tax cost of debt is higher than theâ€‹ before-tax cost of debt. True or False

olasank [31]

Answer:

False

Explanation:

The after cost of debt is always lower than the before tax cost of debt. For example, a company borrows $1,000,000 and pays 7% interest per year. This results in $70,000 in interest expense before taxes = $1,000,000 x 7% = $70,000.

The after tax cost of the debt = $1,000,000 x 7% x (1 - tax rate) = $1,000,000 x 7% x (1 - 21%) = $1,000,000 x 7% x 0.79 = $55,300

5 0

3 years ago

Baltimore Baking is preparing its cash budget and expects to have sales of $30,000 in January, $35,000 in February, and $35,000

Tcecarenko [31]

Answer:

The correct answer is $33,000.

Explanation:

According to the scenario, the given data are as follows:

Jan sales = $30,000

So, Amount collected in March of Jan. = 40% x $30,000 = $12,000

Feb sales = $35,000

So, Amount collected in March of Feb. = 40% x $35,000 = $14,000

Mar. sales = $35,000

So, March cash sales = 20% x $35,000 = $7,000

So, we can calculate the total cash receipts in march by using following formula:

Total cash receipts in march = Amount collected in March of Jan + Amount collected in March of Feb + March cash sales

= $12,000 + $14,000+ $7,000

= $33,000

6 0

3 years ago

On August 29, Paris and Helen agree that Paris will supply Helen with natural gas for one year beginning on January 1 and Helen

madam [21]

Answer:

The correct answer is letter "B": False.

Explanation:

Anticipatory repudiation is the act by which one party notifies the other intentions of not continuing with their relationship -typically tied to a contract- because of different factors. Those factors sometimes are specified in the terms of the contract and must be met for a Court to qualify the case as an anticipatory breach.

Thus, in the example, <em>Helen should retract her anticipatory breach since she will be able to make the payments for the gas service even though Paris changed the supplier.</em>

5 0

3 years ago

You are the CFO of a US firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operati

PSYCHO15rus [73]

Answer:

Explanation:

When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.

If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.

8 0

3 years ago

The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs. Group of answ

Levart [38]

Answer:

True.

Explanation:

Indirect cost are cost incurred in the production process that cannot be traced directly back to the product, but contributes to the production process in general. For example the salary of wages is not a cost that is directly included in the product itself, but workers are needed to perform tasks and operate the machines that produce the product.

Direct cost are traceable directly to the product and include raw material.

So overhead, facilities and resource opportunity cost are all indirect cost in producing the product.

8 0

3 years ago