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Ede4ka [16]
3 years ago
8

Southern Foods has a $13 million bond issue outstanding with a coupon rate of 7.15 percent and a yield to maturity of 7.39 perce

nt. What is the present value of the tax shield if the tax rate is 34 percent?
Business
1 answer:
Trava [24]3 years ago
5 0

Answer:

$4,420,000

Explanation:

Data provided as per the question

Bond issue value = $13,000,000

Tax rate = 34%

The computation of present value of the tax shield is shown below:-

Present value of tax shield = Tax rate in percentage × Bond issue value

= 34% × $13,000,000

= $4,420,000

Therefore for computing the present value of the tax shield we simply multiply tax rate in percentage with bond issue value.

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The primary source of revenue for the U.S. government in 2022 become individual earnings Taxes. revenue accumulated by the U.S. government is used to fund an expansion of goods, programs, and services to assist the yankee public and pay hobby incurred from borrowing.

Taxes are mandatory contributions levied on individuals or organizations via a government entity—whether or not nearby, regional, or country wide. Tax revenues finance authorities sports, along with public works and offerings which includes roads and faculties, or programs including Social safety and Medicare.

All residents have to pay taxes, and with the aid of doing so, make contributions their honest percentage to the fitness of the authorities and countrywide economic system. The federal taxes you pay are utilized by the authorities to put money into technology and education, and to offer goods and services for the benefit of the american people.

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2 years ago
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andrey2020 [161]

Answer:

The correct answer is rationalization.

Explanation:

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3 years ago
What is an entrepreneur is
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In confirming with an outside agent, such as a financial institution, that the agent is holding investment securities in the cli
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Answer:

3. Rights and obligations.

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