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BartSMP [9]
3 years ago
10

Pepci co. is issuing a $1,000 par value bond that pays 7 percent annual coupon and mature in 15 years. Investors are expected to

pay $925 for the bond. The company is in a 40 percent tax bracket. What will be the firm’s after tax cost of debt?
Business
1 answer:
prisoha [69]3 years ago
6 0

Answer:

1,678660

Explanation:

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They will put themselves on social media for a way to get out there
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You create a screen shot illustrating what the new system will potentially look like. this is an example of ___________.
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This is an example of prototyping
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True or False: Computing interest using the sum-of-the-digits method allocates more interest at the beginning of a loan than at
Serhud [2]

Answer:

True

Explanation:

To illustrate how the sum-of-the-digits method allocates interest we can use a lease example:

You are the lessor and you will lease a machine during 4 years. The lease requires 4 equal payments of $100,000 at the beginning of the year. After the lease, the asset's salvage value = $0.

The asset's current value = $300,000, so total interests received = $100,000

Using the sum-of-the-digits method, you will allocate interest as follows:

  • year 1 = 3/6 x $100,000 = $50,000
  • year 2 = 2/6 x $100,000 = $33,333
  • year 3 = 1/6 x $100,000 = $17,000

The largest portion of interests is allocated during the beginning of the loan.

5 0
3 years ago
What is the difference between gross income, taxable income, and adjusted gross income?
melisa1 [442]

Answer:

Here is what I found, I hope it helps

Explanation:

Gross Income contains all money you earn that is not expressly removed from taxation under the Internal Revenue Code (IRC). The part of your gross income which is currently subjected to taxes is Taxable Income. To arrive at the number of Taxable Income, expenses are deducted from gross income. For a year, your Gross Income applies to all your pre-tax earnings, while your Adjusted Gross Income is mostly smaller and refers to your income after tax deductions. I could not find the difference between Adjusted Gross Income and Taxable Income.

6 0
3 years ago
Read 2 more answers
A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It
Nataliya [291]

Answer:

840 breads size oven.

Explanation:

According to Little's law,

Inventory = flow rate × flow time

Inventory (I) is the number of flow units that are currently handled by a business process.

I= unknown

Flow rate (R) is the number of flow units going through the business process per unit time.

R= 4200 breads per hour or 70 breads per minute (4200/60)

Flow time (T) is the amount of time a flow unit spends in a business process from beginning to end.

T= 12 minutes.

Inventory = flow rate × flow time

Inventory = 70 breads per minute × 12 minutes

Inventory = 840 breads size oven

Therefore, for the company to produce 4200 breads per minute, 840 breads size oven is required.

4 0
4 years ago
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