Answer:
After tax cost of debt is 4.16%
Explanation:
The yield on the debt which is pre-tax cost of debt can be computed using the rate formula in excel, which is given as follows:
=rate(nper,pmt,-pv,fv)
where nper is the number of coupon payments,this is calculated as 19*2 since it has a semi-annual coupon interest
pmt is the periodic coupon payment 6.1%/2*$2000=$61
pv is the current price of the bond which is $1933
fv is the face value repayable on redemption $2000
=rate(38,61,-1933,2000)
=3.20%
This is semi-annual yield , annual yield is 3.20%*2=6.40%
After tax cost of debt=6.40%*(1-t)
where t is the tax rate at 35%=0.35
after tax cost of debt=6.40%*(1-0.35)
=4.16%
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
External Controls
Explanation:
Based on the information provided within the question it can be said that the the managers at XYZ seem to be using External Controls. These are outside party that can affect the way that the business is controlled. Since the managers are utilizing supervision and other administrative systems, then they are using outside help instead of handling it themselves with tools at their disposal, thus using External Controls.
Answer:E. a flexible price policy
Explanation:
The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.
The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.
Answer:
The answer is: E) Market development strategy
Explanation:
A market development strategy involves selling your current products in new markets.
In this case, Quitman Enterprises will sell their language dictionary (current product) to international students abroad (new market).
They will seek to expand their potential market through new users of the same product.
