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n200080 [17]
3 years ago
9

Ladder Works has debt outstanding with a coupon rate of 6 percent and a yield to maturity of 6.8 percent. What is the aftertax c

ost of debt if the tax rate is 21 percent
Business
1 answer:
damaskus [11]3 years ago
8 0

Answer:

5.372%

Explanation:

Given that

Coupon rate = 6 percent

Yield to maturity = 6.8%

Tax rate = 21 percent

So by considering the above information, the after tax cost of debt is

= Yield to maturity × (1 - tax rate)

= 6.8% × (1 - 0.21)

= 5.372%

We simple multiply the yield to maturity with the after tax rate so that the approximate cost of debt could come

Ignored the coupon rate as it is not relevant for the above computation

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Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two
MatroZZZ [7]

Answer: a, provides 30 days' notice to futurist of its desire to terminate.

Explanation: for an appointment to be terminated, there would a notice prior that termination, you can't just terminate an appointment without a 30days notice.

6 0
3 years ago
Cyclical unemployment is closely associated with Select one: a. long-term economic growth. b. short-run ups and downs of the eco
kiruha [24]

Answer:

b. short-run ups and downs of the economy.

Explanation:

Cyclical unemployment is a form of employment that occurs as a result of fluctuations in the economy.

When there's a downturn in the economy, unemployment increases and It falls when there's a boom.

I hope my answer helps you

7 0
3 years ago
Read 2 more answers
On September 1, 2021, Gold Gaming sold 400 one-year subscriptions to its online gaming website for $90 each. The total amount re
musickatia [10]

Answer:

Explanation:

The adjusting entry is shown below:

Deferred Subscription Revenue A/c Dr $12,000

            To Subscription revenue A/c $12,000

(Being the deferred subscription amount is adjusted)

The computation is shown below:

= Number of subscriptions sold × sale price each × (number of months ÷ total number of months in a year)

= 400 subscriptions × $90 × (4 months ÷ 12 months)

= $36,000  × (4 months ÷ 12 months)

= $12,000

The four months are reported from the September 1 to December 31

7 0
3 years ago
Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incu
fenix001 [56]

Answer:

156.6%

Explanation:

Given:

Cosi Company's Incurred over head for the next period = $830,000

Expected labor hours = 53,000

Cost of labor = $10.00 per hour

Thus,

Total labor cost = 53,000 × $10.00 = $530,000

Now,

the Cosi Company's predetermined overhead rate will be calculated as:

Predetermined overhead rate =  Incurred overhead / Total labor cost

on substituting the respective values, we get

Predetermined overhead rate = ( $830,000 / 530,000 ) = 1.566

or

Predetermined overhead rate = 1.566 × 100% = 156.6%

4 0
3 years ago
When Arby's announced in a recent ad campaign that "unlike McDonald's, all of Arby's chicken sandwiches are made with 100% all n
USPshnik [31]

Answer: Comparative

Explanation:

The comparative message is one of the type of business marketing strategy that helps in promoting the various types of products and the services in the market.

 It basically helps in encouraging the improvement and also innovation in the given products to meet the desirable properties in an organization based on the consumer requirement in the market.

The comparative message compare the products in the market with the other competitors in terms of characteristics and features. Therefore, comparative is the correct answer.      

 

8 0
3 years ago
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