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3 years ago

Telecom Systems can issue debt yielding 7 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt

Business

1 answer:

Natali5045456 [20]3 years ago

3 0

Answer:

After tax cost of debt = 0.049 or 4.9%

Explanation:

The after tax cost of debt is the rate of debt after deducting the benefit from tax savings due to interest payments required by the debt which are deductible before calculating tax. The after tax cost of debt is somewhat an effective cost of debt. It is calculated using the following formula,

After tax cost of debt = Cost of debt * (1 - tax rate)

After tax cost of debt = 0.07 * (1 - 0.3)

After tax cost of debt = 0.049 or 4.9%

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Andrei [34K]

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<u>Explanation:</u>

The technological change in the world has resulted in Globalization. Globalization made the world shrink based on the three factors.

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Also, transportation plays another major role in Globalization which is achieved by air and sea transportation. The improved sea and air transportation have accelerated the flow of goods and people throughout the world.

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3 years ago

Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inve

Ivan

Answer:

<u>Date Purchases Sales </u>

May 1 1,550 units at $44

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TOTAL COGS FOR MAY 12 SALE = $53,520

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Under LIFO (last in, first out), the cost of goods sold is determined using the price of the last units purchased, which means that the most recent (or updated) price is used to calculate COGS.

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Answer:

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Answer:

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