Answer:
B) 9.1%
Explanation:
Cost of debt is the interest rate paid by a company due to borrowing money; i.e debt from investors.
$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;
First, find pretax cost of debt ;
Pretax cost of debt = (Interest expense / Face value of debt )*100
= (26,000,000/ 185,000,000 )*100
=0.1405 *100
= 14.05%
Next, use pretax cost of debt to find after-tax cost of debt;
After-tax cost of debt = Pretax cost of debt (1-tax)
= 14.05% *(1-0.35)
= 9.13%
Therefore, Westford's cost of debt capital is 9.1%
Answer:
16.67%
Explanation:
Calculation to determine what percentage of your salary must you save each year
First step is to calculate the Annual savings
Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]
Annual savings=$5 million*0.07/(1.1^40-1.03^40)
Annual savings=$8333.88
Now let determine the percentage of the salary you must save each year
Proportion of savings=$8333.88/$50,000
Proportion of savings=0.1667*100
Proportion of savings=16.67%
Therefore the percentage of your salary that you must save each year is 16.67%
Answer:
The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.
tactical, hands-on level
Explanation:
At the highest level of marketing management is the strategic level, which is more conceptual. Down the scale is the tactical marketing plan, which specifies the marketing tools and techniques which a company will use to meet its marketing goals. At this level, the tactical tools in use include advertising, sales promotions, and other activities that directly implement the strategic marketing plan. The tactical level reduces the business strategic goals to marketing objectives.
Answer:
The answer is $115.38
Explanation:
Solution
Given that
The annual dividend on preferred stock = $7.50
Required return on preferred stock+= 6.5%
The next step is to find at what price should the preferred stock sell which is given as follows:
The rice of preferred stock = 7.50/6.5%
= $115.38
$115.38 is the price at which the stock preferred was sold.
"If you send in the minimum payment, you will be charged a late fee."
This is an INCORRECT statement, because you will not be charged a late fee just for making the minimum payment. Minimum payments are not a good idea because you will be charged interest on the remaining amount and will have a harder time paying off the balance, but you will not be charged a late fee.
