Answer: 8.45%
Explanation:
From the question, we are informed that Holmes Company's currently has an outstanding bonds and has a 8% coupon and a 13% yield to maturity.
We are further told that Holmes believes it could issue new bonds at par that would provide a similar yield to maturity and that its marginal tax rate is 35%.
Holmes's after-tax cost of debt will therefore be calculated as:
= Yield to maturity × (1 - Marginal tax rate)
= 13% × (1 - 35%)
= 13% × (65%)
= 0.13 × 0.65
= 0.0845
= 8.45%
This may be true or false depending on the situation.
Explanation:
If countering in the inflation, banks were giving negative values all the time to their consumers they would not survive in the game.
But this is not to say this is not a practice that has been done to the unsuspecting people who have wanted to invest money.
They are being given policies and rates that after countering inflation are actually in loss for them as they do not grow as much as the money would have devalued by then.
This is however quite rare and is a malpractice.
Answer:
Good records allow you to identify all of your assets, expenses, income, and liabilities. This lets you see the strengths and weaknesses of your business, which will enable you to make better financial decisions. Accurate accounts give real-time data for better reporting and forecasting.
HOPE THIS HELPED!!!!!!!!!!!!!XDDDDDDDDDDD
Answer:
debit Sales $15,000; debit Purchases Returns and Allowances $200 and credit Income Summary for $15,200
Explanation:
Based on the information given the CLOSING ENTRY that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances are:
Debit Sales $15,000
Debit Purchases Returns and Allowances $200 Credit Income Summary for $15,200
($15,000+$200)
(To close revenue accounts and income statement accounts)
