The pre-tax cost of debt is yield to maturity of the debt.
The yield to maturity of debt is calculated as -
Yield to maturity = ]Coupon payment + ( Face value - Current price) / Number of years)] / [ ( Face value + Current price) / 2]
Here,
Coupon payment = $ 29.50 (semi-annual, thus 5.9% / 2 * 1000)
Face value = $ 1,000
Price = $ 1,000 * 108% = $ 1,080
Number of years = 12 ( semi-annual, thus 6 years * 2)
Pre-tax cost of debt = [ 29.50 + (1,000 - 1080/12)] / [ (1000+1080)/2 ]
Pre-tax cost of debt = 2.196 %
Annual pre-tax cost of debt = = 2.20 % * 2 = 4.40%
After tax cost of debt = ( 1 - tax rate ) * Annual pre-tax cost of debt
After tax cost of debt = ( 1 - 35%) * 4.40 %
After tax cost of debt = 2.86 %
Answer:
Nothing.
Explanation:
It is known that a good credit score generally comes from a history of managing money responsibly. This doesn’t mean you shouldn’t borrow money though; in fact, companies often like to see a track record of timely payments and sensible borrowing. In Leon's case, he has no dealings with credit cards as he makes all his transaction with physical cash; therefore he has no credit score in any way.
Leon has to work towards improving his poor credit score or need to build up credit history from nothing.
Answer:
Grade 6 spelling bee champion
Explanation:
it is not relevant by the time you are applying for college, and does not say very much about you as a person & what you like to do.
Answer:
See explanation
Explanation:
(a) Assets are understated - If we do not adjust accrued revenue, the assets are understated. For example - if we do not add any outstanding rent revenue, the assets will become understated.
(b) Liabilities are overstated - If we do not adjust unearned revenue, the liabilities are overstated. For example - if we do not deduct any expired unearned revenue, the liabilities will become overstated.
(c) Liabilities are understated - If we do not adjust accrued expense, the liabilities are understated. For example - if we do not add any outstanding rent expense, the liabilities will become understated.
(d) Expenses are understated - If we do not adjust accrued expense and prepaid expense, the expenses are understated. For example - if we do not add any outstanding rent expense and expired prepaid expenses, the expenses will become understated.
(e) Assets are overstated - If we do not adjust prepaid expense, the assets are overstated. For example - if we do not deduct any expired prepaid insurance, the assets will become overstated.
(f) Revenue is understated - If we do not adjust accrued revenue and unearned revenue, the revenue is understated. For example - if we do not add any outstanding rent revenue and expired unearned revenue, the revenue will become understated.
Answer:
Option (a) is correct.
Explanation:
Given that,
Sales = $410,000
Costs = $284,000
Depreciation Expense = $510,000 × 0.1920]
= $97,920
Therefore,
Operating Cash Flow:
= [(Sales - Variable Costs - Fixed Costs) × (1 - Tax Rate)] + [Depreciation × Tax Rate]
= [($410,000 - 284,000) × (1 - 0.35)] + [$97,920 × 0.35]
= [$126,000 × 0.65] + [$97,920 × 0.35]
= $81,900 + $34,272
= $1,16,172
