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
YO Easy question for all
kondaur [170]

Answer:

can you like explain itmore like you understand

3 0
2 years ago
The signing of the project portfolio statement signals the transition from the high-level project initiating stage into the more
OLga [1]

Answer:

False

Explanation:

Signing a project charter rarther than project portfolio signal the trasition of a project from high level initiating phse into a more detailed project planning stage.

cheers.

5 0
3 years ago
Which of the following is not a type of trademark? fanciful arbitrary simple suggestive
Phantasy [73]

Considering the available options, the choice that is not a type of trademark is "<u>Simple</u>."

<h3>What is a Trademark?</h3>

Trademark is the term used to describe the word, phrase, design or symbol, or combination thereof.

Generally, the purpose of a Trademark is to create the identity for the source of the commodities such that these commodities can be easily differentiated from similar commodities.

<h3>Different types of Trademarks</h3>

There are four major categories of Trademarks which include the following:

  • Coined or Fanciful trademark
  • Arbitrary trademark
  • Suggestive trademark
  • Descriptive trademark

Hence, in this case, it is concluded that the correct answer is "<u>Simple</u>."

Learn more about Trademarks here: brainly.com/question/11957410

5 0
2 years ago
A fruit grower estimates that if he harvests his crop of oranges now, he will get 100 pounds per tree, which he can sell for $.2
12345 [234]

Answer:

At 7.5 weeks will bethe best time

it will yield a profit of 30.63 per tree

Explanation:

we will construct the formula:

p = 0.25 -0.01w

q = 100 + 10w

Now, using SOLVER we can determinate the maximum profit point at 7.5 weeks

we construct these formula in excel, we stablish we can change only the "w" and it will look for the answer.

Now we can determinate the profit at this point:

P = 0.25 - 0.01 ( 7.5) = 0.175

Q =  100 x 10 (7.5) = 175

175 x 0.175 = 30.625 = 30.63

6 0
3 years ago
1. Your friend wants to retire and has $375,000. She expects to live for another 25 years, and she also expects to earn 7.5% on
forsale [732]

Answer:

Annual withdraw= $33,641.50

Explanation:

Giving the following information:

PV= $375,000

n= 25 years

i= 7.5%

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]

Annual withdraw= (375,000*0.075) / [1 - (1.075^-25)]

Annual withdraw= $33,641.50

6 0
2 years ago
Other questions:
  • ____________ must be trusted to make business work properly and includes accountants.
    11·1 answer
  • Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal
    12·1 answer
  • Giant robot magazine has embraced the use of​ __________ to reach its current and potential customers.
    10·2 answers
  • which of the following would be a duty of an instructional teacher aide ? A . Care for sick children and clean floors . B . Moni
    11·1 answer
  • Zelda Partnership holds cash of $30,000 and inventory worth $60,000 (basis equals $42,000). Zelda makes a $30,000 cash liquidati
    5·1 answer
  • Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared t
    6·1 answer
  • On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $2,100 on Invoice 1001, terms 1/10, n/3
    14·1 answer
  • On July 4, Cullumber's Restaurant accepts a Visa card for a $1,350 dinner bill. Visa charges a 2% service fee. Prepare the entry
    14·1 answer
  • What should you do when you use a ladder?
    7·2 answers
  • ohn, 68, is currently enrolled in a Medicare Supplement Plan with a stand-alone Prescription Drug Plan. Newly diagnosed with a c
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!