Answer: Corporate bond
Explanation:
It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.
On the other hand, the After Tax Cost of the yield of the corporate bond will be:
= Yield × (1-Tax Rate)
= 8.25% × (1-35%)
= 8.25% × 65%
= 5.36%
Therefore, the Corporate Bond should be chosen since it has a higher yield.
Answer:
Net present value of this expansion project is 8234.
Explanation:
To get the net present value, we make a cash-flow in excel. See document attached.
At moment 0 the investment is =$(92.700), also we consider the working capital =(6.600)
Moment 1 to 6 = $26.900
We calculate the Net cash flow (that is the difference between benefits and cost).
To get net present value, we use VNA formula. ( =VNA(required rate of return; Net cash flow from moment 0 to moment 6) +Net cash flow at moment 0)
Net present value is 8234
When I hear the word criminal, I think of someone who did something bad, really bad. This person probably stole a large item or robbed a bank for a large lump-sum of money. When I hear white collar criminal, I think of someone who stole from a company they work for or family member, even though they did not need to steal anything as they are well-off.
Answer:
Yes, the cash balance is less than $75,000
Explanation:
a. b
Current ratio is more than required : No violation
Debt to equity ratio is less than stated: No violation
Cash balance as per books exceed 75000 but as per bank book less: violation
(As per bank reco the amount is different as company may not recorded bank charges and expenses as reflected in bank statement.