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Bezzdna [24]
3 years ago
11

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity twith a c

urrent price of $854. The issue makes semiannual payments and has coupon rate of 5 percent. If the tax rate is 0.39, what is the aftertax cost of debt
Business
1 answer:
Gemiola [76]3 years ago
4 0

Answer:

The after-tax cost of debt : 3.90%.

Explanation:

The semi-annual coupon = 1,000 x 5% /2 = $25.

The before-tax cost of debt, denoted as i, is the yield to maturity of the company's debt, which is calculated as below:

(25/i) x [1 - (1+i)^-40] + 1,000/(1+i)^40 = 854 <=> i = 3.147%.

=> Because the debt is semi-annual compounded, we have the: Effective annual rate = Before-tax cost of debt =  ( 1+ 3.147%)^2 -1 = 6.39%.

=> After tax cost of debt = Before tax cost of debt x ( 1 - tax rate) = 6.39% x ( 1 - 0.39) = 3.90%.

So, the answer is 3.90%.

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Answer:

$21.67

Explanation:

Exhibit 21-3 is attached with the answer .Please find it.

Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.

Cost of producing 60 units

Variable cost = $800

Fixed cost = $500

Total cost = $800+500 = $1,300

Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67

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3 years ago
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Answer: E. development of the good or service to be sold

Explanation:

The typical starting point of any firm's marketing mix is the development of the good or service to be sold. The marketing mix is simply a mix of the marketing strategies that are vital to achieve marketing aims and increase sales.

It should be noted that marketing mix begins with the product and without this, distribution, pricing and the promotion are not relevant.

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3 years ago
For what eccentricity is the secondary focus (which is usually empty) located at the sun? What is the shape of this orbit?
saul85 [17]

Answer:

The eccentricity, denoted by e, is defined as that fraction of an ellipse size which causes the focus to move away from the center. When an ellipse has an eccentricity of zero, this means that the focus and the center are in one same place. Thus the eccentricity of the secondary focus located at the sun is zero when located at the sun. Thus with an eccentricity of zero, the focus and center will be at same place therefore making the shape of the orbit to be a perfect circle.

Explanation:

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3 years ago
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True [87]

Answer:

Find attached

Explanation:

Horizontal or trend analysis involves is a financial statement analysis technique that shows the percentage change or dollar change in a corresponding financial statement's item.

For example, the change in the fixed assets by a way of increase or decrease compared to last year's financial statements.

Formula:

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Answer:

True.

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