Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.18 every year in perpetuity. If the
1 answer:
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Answer:
Explanation:
The total assets comprises of current assets, fixed assets ,and the intangible assets
The current assets includes cash, stock, account receivable, etc
Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.
And, the intangible assets include patents, copyrights, goodwill, etc.
The preparation of the classified balance sheet for Nike, Inc on May 31, 2022 is presented in the spreadsheet. Kindly find the attachment below:
Answer:
6.53%
Explanation:
For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:
Given that,
Present value = $1,050.76
Future value or Face value = $1,000
PMT = 1,000 × 10% = $100
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying this above formula
1. The pretax cost of debt is 8.70
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8.70% × ( 1 - 0.25)
= 6.53%
