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Stolb23 [73]
3 years ago
13

The​ after-tax cost of debt is higher than the​ before-tax cost of debt. True or False

Business
1 answer:
olasank [31]3 years ago
5 0

Answer:

False

Explanation:

The after cost of debt is always lower than the before tax cost of debt. For example, a company borrows $1,000,000 and pays 7% interest per year. This results in $70,000 in interest expense before taxes = $1,000,000 x 7% = $70,000.

The after tax cost of the debt = $1,000,000 x 7% x (1 - tax rate) = $1,000,000 x 7% x (1 - 21%) = $1,000,000 x 7% x 0.79 = $55,300

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Assume Maine Line Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge
Keith_Richards [23]

Answer:

$214,000

Explanation:

The total reservation cost per month is given by the following expression:

R = \$14,000+\$1*n

Where 'n' is the number of monthly reservations.

If there are 200,000 reservations for passengers taking a trip next month, the reservation cost is:

R = \$14,000+\$1*200,000\\R=\$214,000

Total reservation cost is $214,000.

8 0
3 years ago
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Natural risks would be examples of
Lisa [10]
B I think I hope I'm right if not sorry
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2 years ago
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Where are you from im from georgia but live in kentucky
alexira [117]

Answer:

I am from Long Island but live in NC

Explanation:

4 0
2 years ago
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Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four
tiny-mole [99]

Answer:

Total overhead assigned to each the 35mm camera $ 66,000

An Activity Rate for receiving   $8 per receiving order

Receiving costs for 35mm camera  $1600

An Activity Rate for packing $ 10 per packing order

Explanation:

Product Machine Hours Setups Receiving Orders Packing Orders

35mm         10,000             100           200                  400

Digital            10,000          250          800                  2000

Cost            $60,000        $40,000    $8,000           $24,000

Total Overhead Costs= $ 60,000 + $ 40,000 + $ 8000+ $ 24,000= $132,000

Total overhead assigned to each the 35mm camera=( Total Costs/Total Machine Hours) * 35mm camera machine hours

Total overhead assigned to each the 35mm camera= ($ 132,000/ 20,000)10,000= $ 66,000

An Activity Rate for receiving based on receiving orders= 8000/1000=  $8 per receiving order

Receiving costs for 35mm camera= 8 * 200= $1600

An Activity Rate for packing based on packing orders = 24000/ 2400= $ 10 per packing order

5 0
3 years ago
a While troubleshooting a problem, you realize the problem is caused by a complex series of issues that will affect a large numb
Jet001 [13]

The next step to undertake in the troubleshooting process is:

  • To document the incident

<h3>What is Troubleshooting?</h3>

This refers to the various ways through which a person assesses a problem and eliminates them.

In the troubleshooting process, we can see that there are various processes which includes: Information gathering, analysis, implementation, etc.

However, as the problem is caused by complex issues, it is best to document the incident so that it can be more carefully analysed.

Read more about troubleshooting here:
brainly.com/question/25953942

8 0
2 years ago
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