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%
Answer:
b. Should the firm pay cash for a purchase or use the credit offered by the supplier?
Explanation:
Working capital decision is the decision which includes the cash, Account receivable, Account payable, the portion of debt payable within one year. Decision related to supplier is actually related to account payable. so this is the working capital decision. Other decision involves fixed assets, long term debt, investments and projects under consideration.
<span>The answer is 3 Set up automatic payments. Automatic payments can be done through direct access to ATM that receives the salary or bank account. This can help people like Melanie to avoid having trouble with late payments that would incur penalties. Paying by check would not be a good option because you should make sure there is enough money to pay for that purchase if not there could be more trouble. Paying through phone or online payments are sometimes delayed before it reaches the concerned company.
</span>
Answer:
O True
Explanation:
Amortization is the gradual reduction in a value or balance of anything over a specified period. Evenly over life amortization of loan is the distribution of outstanding amount over remaining life / period. in this example $20,000 is amortized over 60 months which is 20,000 / 60 = $333.33 per month. So the statement is True.
<span>Pay-per-click or cost-per-click is the bidding strategy you should use to maximize the number of visitors to your website.
By using this strategy you are targeting your audience based on advertisements. If the advertisement gets clicked it redirects them to your website. An advertiser will pay the person who published the add for them when the ad is clicked. This type of advertising is very popular across market channels online. </span>
