1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brums [2.3K]
3 years ago
8

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 12% coupon, semiannua

l payment ($60 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt
Business
1 answer:
Leona [35]3 years ago
6 0

Answer:

10.77%

Explanation:

FV: $1000

PV: $845.87

PMT: $60

Nper: 40 = (25 years - 5 years ago)* 2 for semi-annual payment

We use excel to calculate semi-annual discount rate by formula Rate(Nper,PMT,-PV,FV)

= rate(40,$60,-$845.87,$1000) = 7.18%

⇒ annual rate = semi-annual rate * 2 = 7.18% * 2 = 14.36%

after-tax cost of debt = 14.36% * (1 - 25%) = 10.77%

<em>Please see excel attached for the calculation</em>

Download xlsx
You might be interested in
Out of 150 math students, 86% passed. how many students passed math class?
deff fn [24]

129 is the answer, 150 times 86%. look up Mathaway.com, its a really good calculator

7 0
3 years ago
Read 2 more answers
Measures that help to solve economic problems are called ​
Romashka-Z-Leto [24]

Economic stimulus Answer:

Explanation:

8 0
3 years ago
A general contractor is managing a construction project that will add a new conference room to an existing office building. The
professor190 [17]

Answer:

A) Using a change management system to influence performance

Explanation:

First of all, since the change was proposed by the customer, any delay in the construction project caused by their new request should not trigger the damage clause.

The contractor should use a change management system so the existing baseline is not altered by the delay. A change management system is responsible for managing all the changes that might occur during the project's inception until its completion. It is important that all changes or alterations to the original schedule are properly recorded and authorized (in this case to prevent the damage clause).

By using the change management system, the organization has a standardized methodology for handling changes in the project's schedule. This way any negative impact can be reduced.

6 0
3 years ago
Which part of a business proposal discusses the history of a product, service, or company with a focus on the relationship betwe
Zolol [24]

Background-- part of a business proposal discusses the history of a product, service, or company with a focus on the relationship between the writer and a potential buyer

What is business proposals?

Effective business proposals are built around a great idea or solution. While you may be able to present your normal product, service, or solution in an interesting way, you want your document and its solution to stand out against the background of competing proposals.

An effective business proposal:

informs and persuades efficiently. It features many of the common elements of a report, but its emphasis on persuasion guides the overall presentation.

How do you introduce a business proposal?

You should write the introduction to your proposal first, quickly summarizing all sections of the business plan. It should also be the last part of the plan you work on. The overview in the introduction will help you to know what to cover as you write all parts of the business plan in greater detail.

Learn more about business proposals:

brainly.com/question/24028071

#SPJ4

4 0
2 years ago
Which formula is correct formatting for a nested function?
erastova [34]

Answer:

=IF(AND(B2>3000,02>2000),"Bonus","No Bonus")

Explanation:

A nested If statement is used when 1 or more conditions are to be tested. The result of the nested function depends based on the true value of the function.

i.e. If the nested statement is true, certain operations are to be done otherwise, do something else. In other words, the IF function allows you to make a logical comparison between a value and what you expect by testing for a condition and returning a result if True or False.

The syntax of a nested function goes thus

IF( condition1, value_if_true1, IF( condition2, value_if_true2, value_if_false2 ))

This would be equivalent to the following in Excel

= IF(condition1,"value_if_true",value_if_false)

Base on the above explanation, only option B is right.

And what it does is that

it checks if cell B2 is greater than 3000 AND cell 02 is greater than 2000.

If both statement are true, "Bonus" will be the output result

If one ore both statement are false, "No Bonus" will be the output result

7 0
3 years ago
Other questions:
  • Driving his motorcycle negligently, joe crashes into a streetlight. the streetlight falls onto kim, who is standing nearby, resu
    14·1 answer
  • Amanda wants to become an industrial designer. She wants to learn this specialized skill from an expert in this industry by work
    13·2 answers
  • Which type of financial institution typically has membership requirements? AOnline Commercial Bank BCommercial Bank CFederal Res
    11·2 answers
  • When a business asks "What business are we in?" they are: a. conducting an environmental analysis. b. defining their business mi
    15·1 answer
  • Although best used as a last resort, many small businesses find it convenient to use __________ as a short-term source of financ
    7·1 answer
  • Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month. How many units will nee
    7·1 answer
  • audrey is driving she runs over a jagged piece of metal on the road, which component of her automobile insurance would cover thi
    15·2 answers
  • Process of tracking customer contacts and providing the customer with a price quote is
    9·1 answer
  • A. Finance, or financial management, requires the knowledge and precise use of the language of the field.
    13·1 answer
  • For management, a major downside of telecommuting is ________. decreased collaboration reduced morale increased turnover decreas
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!