the majority of each monthly payment at the beginning of the loan goes to pay the:

The Village of Frederick borrowed $1,000,000 from a local bank by issuing 4 percent tax anticipation notes. If the village repai

sertanlavr [38]

Explanation:

The computation is shown below:

It records the two items i.e

Tax Anticipation Notes Payable = $1,000,000

And, the expenditure is recorded for

= Tax Anticipation Notes Payable × tax rate × number of months ÷ total number of months in a year

= $1,000,000 × 4% × 6 months ÷ 12 months

= $20,000

Both the above items are debited for $1,000,000 and $40,000 respectively

3 0

3 years ago

Schwarzentraub Corporation's expected free cash flow for the year is $500,000; in the future, free cash flow is expected to grow

timurjin [86]

11x12x1x3x6x8 that is the equivalent equation

7 0

2 years ago

You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce

Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000 + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1 - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

5 0

3 years ago

Your variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Your average a

tester [92]

Answer:

$575

Explanation:

To determine the mortality and expense risk charges for the year all you have to do is multiply your average account value times the fee rate:

mortality and expense risk charges = $46,000 x 1.25% = $575

The same logic applies to calculate all the fees charged including administrative fees.

6 0

3 years ago

The marginal propensity to consume is the: A. amount by which disposable income increases when consumption increases by $1. B. a

siniylev [52]

Answer:

B. amount by which consumption increases when disposable income increases by $1

Explanation:

As people has an archetypical choise betwene consume(use) or save (don't use) their income. Economics state there is a marginal prpensity in the agent to consume while other save but of these add to 1 as both options add to the entire income.

hus when income increase by $1 the marginal propensity to consume are the cent used while marginal propensity to save are the cent which are not used.

6 0

3 years ago

Read 2 more answers

​the majority of each monthly payment at the beginning of the loan goes to pay the:

the majority of each monthly payment at the beginning of the loan goes to pay the: