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Scilla [17]
3 years ago
13

​(Cost of​ debt) Belton Distribution Company is issuing a ​$1 comma 000 par value bond that pays 8.9 percent annual interest and

matures in 15 years that is paid semiannually. Investors are willing to pay ​$962 for the bond. The company is in the 18 percent marginal tax bracket. What is the​ firm's after-tax cost of debt on the​ bond?
Business
1 answer:
ioda3 years ago
5 0

Answer:

After tax cost of debt is 7.69%

Explanation:

The after tax cost of debt can be computed by first of all determining the pre-tax cost of debt .

The pre-tax of debt is the yield to maturity computed using the rate formula in excel as follows:

=rate(nper,pmt.-pv,fv)

nper is the number of times the bond would pay coupon interest over the entire bond life ,which is 15 years multiplied by 2=30

pmt is the semi-annual interest which is $1000*8.9%/2=$44.5

pv is the current price of the bond at $962

fv is the face value of the bond at $1000

=rate(30,44.5,-962,1000)=4.69%

this is the semi-annul yield ,annual yield is 9.38%

The 9.38% is the pretax

after tax cost of debt=9.38%*(1-0.18)=7.69%

0.18 is the 18% tax rate

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skelet666 [1.2K]

Answer:

$13,000

Explanation:

Most property purchased during 2019 and beyond, may be expenses using Section 179 tax deductions. The limit for 2019 was $1 million and that is way more than $13,000. Section 179 is one of the few benefits that small business got from the Tax Cut and Jobs Act, and it can be really useful.

Businesses can deduct the full purchase price of qualifying equipment (used manufacturing equipment qualifies) as long as it was purchased after January 1, 2019. This is an incentive created to encourage businesses to buy more equipment and invest more.

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3 years ago
Marianna voluntarily gives up her lunch hour to help her colleague who is struggling to finalize an important report. This is an
Licemer1 [7]

Answer:

correct option is E. organizational citizenship behavior

Explanation:

solution

as per given we know that here Marianna help by gives up her lunch hour for colleague

so we can say this is perfect example of organizational citizenship behavior

because

(1) there job satisfaction is more closely related to contribution than to her core job task

(2) in same study also showed it colleague may not have a lot of work experience

(3) it also allows colleague to feel that they have greater control over the work they are doing

so we can say correct option is E. organizational citizenship behavior

4 0
3 years ago
Read 2 more answers
On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consum
-BARSIC- [3]

Answer:

stockholer's equity will be overstated by $800.

Explanation:

The adjustment required is to record $800 of supplies used as an expense, hence, by carrying out the adjustment, net income is overstated by $800 so also retained earnings and shareholders' equity.

In other words,the balance that would be left in supplies is opening balance of $200 plus purchase of supplies which is $950 minus the supplies used.

balance of supplies=$200+$950-$800=$350

Option B is wrong the balance expected is $350 and the balance without adjustment is $200,that is $150 understatement not $350

4 0
2 years ago
Pollution caused by candles isn't taken into account.Quality improvements as a source of well-being are ignored.GDP doesn't capt
hammer [34]

Answer:

D. The marginal cost of light is zero, and by convention zero-priced goods and services are excluded from GDP

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Only things that have a monetary cost are included in GDP. Things that do not cost "anything" in monetary terms are not included, and this is a major shortcoming of GDP.

From an ecological economics standpoint, things like sunlight, air, and water are often not valued and included in GDP. This is the same case as in the question, because the marginal cost of light is zero, then, it is not included in GDP.

3 0
3 years ago
BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager w
krek1111 [17]

Answer: Therefore, we should make her an offer at that salary

Explanation:

Based on the information given in the question,

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Therefore, we should make her an offer at that salary.

7 0
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