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svetlana [45]
3 years ago
6

The Lincoln Company sold a $1,000 par value, noncallable bond several years ago that now has 20 years to maturity and a 7.00% an

nual coupon that is paid semiannually. The bond currently sells for $925 and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation

Business
1 answer:
Bumek [7]3 years ago
8 0

Answer: check attached file

Explanation:

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wlad13 [49]

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4 years ago
Golddex Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is
never [62]

Answer:

The correct answer is $263,200.

Explanation:

According to the scenario, the given data are as follows:

Salvage value =$220,000

Working capital = $60,000

Book value = $140,000

Tax rate = 21%

So, Gain on disposal = Salvage value - Book value

= $220,000 - $140,000 = $80,000

Now, Tax paid on gain on disposal value = Gain on disposal × tax rate

= $80,000 × 21% = $16,800

So, Salvage value after tax = Salvage value - Tax paid on gain on disposal value

= $220,000 - $16,800

= $203,200

So, we can calculate the terminal cash flow by using following formula:

Terminal cash flow = Salvage value after tax + Working value

= $203,200 + $60,000

= $263,200

7 0
3 years ago
The closing process is also known as which of the following?
Alex

Answer:

A. Project completion is the answer

plz mark me as brainliest

3 0
4 years ago
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logical fallacy Well, what form of government do you want, a government by liberal do-gooders ready to spend your hard-earned do
galben [10]

Answer:

i don´t nou sorry

Explanation:

4 0
3 years ago
How goal succession take place? explain the condition responsible for goal succession​
valentina_108 [34]

the new or modified goals are incorporated or substituted for the existing one in such a manner that they do not change the spirit of the existing goals

The new goals are such that individuals or the organisation are willing to state publicly.

4 0
2 years ago
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