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Leto [7]
3 years ago
11

A company's pretax cost of debt:

Business
1 answer:
sertanlavr [38]3 years ago
3 0

Answer:

D.

Explanation:

Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.

Let go through each of answer option one by one:

a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False

b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle

c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle

d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True

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Skysong Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, th
qwelly [4]

Answer:

a. Income Statement for the month of October 2022

<u>Revenue:</u>

Service revenue                               $19,540

<u>Expenses:</u>

Salaries and Wages         $2,800

Supplies Expenses           $360

Depreciation Expenses    $260

Interest Expenses             <u>$350   </u>

Total Expenses                                  <u>$3,770</u>

Net Income                                        <u>$15,770</u>

<u />

b. Retained earnings statement for the month of October 2022

Retained Earnings, October 1, 2020      $0

Add: Net Income                                      <u>$15,770 </u>

Retained Earnings, October 31, 2020  <u>$15,770</u>

3 0
3 years ago
Refer to the scenario below to answer the following question(s). Giant Beanstalks is a company based in Maryland that processes
creativ13 [48]

Answer:

Exclusive distribution

Explanation:

Exclusive distribution is defined as an agreement between a producer and retailer that gives the exclusive right to a retailer to distribute the products of a supplier within a given geographical location. Only one distributor is used by the supplier within a given area.

In the secanrio given Giant Beanstalk a company that processes and cans vegetables, recieves raw materials from over 80 companies. It only gives distribution rights to Greenleaf a grocery chain with 38 stores in the country.

5 0
3 years ago
Understanding how costs behave is useful to management for all the following reasons except a. predicting customer demand b. pre
DedPeter [7]

Answer:

The correct answer is A

Explanation:

Study of the cost behavior provides the useful information for determining the costs.Customer demand could not be predicted by paying the attention to how the costs varies or change when the activity changes. However, the costs could be estimated or determined and changes could be made to the production which is existing in order to maximise the profit for the business.

3 0
3 years ago
Fergie has the choice between investing in a State of New York bond at 9.2 percent and a Surething bond at 8.5 percent. Assuming
arsen [322]

Answer:

Explanation:

State of New York's

4 0
3 years ago
tina is the sole owner of tina's lawn mowing, incorporated (TLM). In one year TLM collects $1,000,000 from customers to mow thei
Arisa [49]

Answer: See explanation

Explanation:

This is the remainder of the question:

How much does this economic activity contribute to GDP, NNP, National income, compensation of employees, Proprietors' Income, corporate profits, personal income, disposable personal income?

a. GDP – $1,000,000

The GDP is the value for the goods and services that a country sells. To loan customers lawns, Tina collects $1,000,000.

b. NNP – $875,000

NNP = GDP - Depreciation

= $1000000 - $125000

= $875000

c. National income – $875,000

d. Compensation of employees- $600,000

This is the amount paid by the company to its workers for work done as wages and salaries.

e. Proprietors’ income – $0

Because it is a Corporation, this will be $0.

f. Corporate profits – $275,000

This will be:

= $50,000 + $150,000 + $75000

= $275000

g. Personal income – $750,000

= NNP + Dividend - Profit

= $875000 + $150000 - $275000

= $750000

h. Disposable personal income – $550000

= $750000 - $60000 - $140000

= $550000

4 0
3 years ago
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