1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pavel [41]
3 years ago
8

LL Incorporated's currently outstanding 7% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at

par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt? Round your answer to two decimal places.
Business
1 answer:
Hitman42 [59]3 years ago
6 0

Answer:

The after-tax cost of debt of LL Incorporated  rounded to decimal places is 9.80%

Explanation:

First and foremost ,the before tax cost of debt is the yield to maturity of 14%

Having determined the before-tax cost of debt,the after-tax cost of debt is the before-tax cost of debt adjusted for marginal tax rate of 30% as computed thus:

after-tax cost of debt=before-tax cost of debt*(1-t)

the t is the tax rate of 30% which is also 0.3

after tax cost of debt=14%*(1-0.3)

                                  =14%*0.7=9.80%

You might be interested in
If during the signing appointment the borrower divulges that the property being financed is an investment property, while the lo
Svetradugi [14.3K]

Answer:

contact the lender's representative immediately before signing the documents.

Explanation:

The above is an example of Actual or Potential misrepresentation which falls under Code of Conduct 5.10. Once a notary signing agent notices that during the signing appointment, the information provided by the borrower differs from what is on the loan document, he should immediately report such false misrepresentation (potential or actual misrepresentation or falsehood known) witnessed by the NSA in connection with a transaction to the representative of the NSA.

By contacting the lender's representative, the purpose for obtaining the loan will be confirmed whether the property being financed is an investment property or for a primary residency otherwise the notary signing agent will be held responsible for any infraction if his signature is appended because he is expected to verify the authenticity of the information provided.

7 0
3 years ago
Which of the following has caused organizations to establish knowledge management programs in their information technology (IT)
quester [9]

Answer:

The correct answer is letter "B": Globalization.

Explanation:

In the corporate world, globalization has pushed companies to adopt the use of Information Technology (IT) to virtually track their operations with customers and keep a better record of the use of their resources. The introduction of computer software and technology have made the gathering and recording of information faster and easier. Thanks to the use of that information, better decisions can be made by managers.

5 0
3 years ago
Preferred stock is a hybrid, a sort of cross between a common stock and a bond in the sense that it pays dividends that normally
saveliy_v [14]

Answer:

The correct answer is False because preferred dividends don't normally grow.

Explanation:

The preferred stock is an action that gives the holder an extra privilege, usually of an economic nature, with respect to what we commonly know as ordinary shares.

For example, the holder of a preferred stock has a higher hierarchy in the collection of dividends or in the distribution of the remaining equity in the event of bankruptcy by the company.

As with ordinary shareholders, preferred shares do not expire, but however, unlike ordinary shares, preferred shares do not legitimize their right to vote at ordinary or extraordinary shareholders meetings, nor do they assign some participation in the capital of the company. Likewise, the profitability of preferred shares is also not guaranteed, because it is linked to obtaining benefits.

5 0
3 years ago
The ideas of Adam Smith and Karl Marx 1. ___ used the metaphor of the "invisible hand" to: a. Describe how the individual pursui
melisa1 [442]

Answer: 1. A - Describe how the individual pursuit of self-interest works to promote the interest of the public as a whole

2. A- Both Adam Smith and Karl Marx believed that humans are motivated by self-interest

Explanation:

1. According to Adam Smith who is known as the father of modern economics stated in his thesis that individual's self-interest and freedom of production as well as consumption is in the best interest of the society as a whole.

Each Individual's free exchange creates signals about which goods and services are valuable. These signals will spontaneously direct competing consumers, producers, distributors, and intermediaries—each pursuing their individual plans— to fulfill the needs and desires of others.

Smith’s invisible hand became one of the primary justifications for an economic system of free market capitalism.

2. Pairing that best describes Adam Smith's view of human motivation in a market economy and Karl Marx's view of human motivation in a communist economy: Both Adam Smith and Karl Marx believed that humans are motivated by self-interest as they both believe that the economy is a capitalist economy that all its good and services are in the hands of private individuals.

7 0
3 years ago
What is the opposite of fade-in, when the image goes black?
Flura [38]

Answer:Umm fade out is the opposite if fade in, but it might not be correct.

Explanation:

;)

5 0
3 years ago
Other questions:
  • If you were trying to decide whether to take out an auto loan for $6500 to buy your first car, thereby allowing you to commute f
    7·1 answer
  • A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, and fixed a
    5·1 answer
  • Coronado Industries had the following inventory transactions occur during 2018:  Unit Cost/unit 2/1/18Purchase56$503/14/18 Purch
    14·1 answer
  • Howard's bank gave him a personal loan because they found him creditworthy. Which type of loan did Howard get?
    14·2 answers
  • what is a common characteristic of careers in the information support services pathway? choose all answer that are correct
    14·1 answer
  • Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of
    8·2 answers
  • All of the following are reasons to stop crashing EXCEPT:
    10·1 answer
  • Cambridge Company has three divisions that all report to the vice president of manufacturing. Each division has two departments.
    9·2 answers
  • Account Title Debit Credit Cash $ 6,400 Accounts receivable 24,500 Office supplies 7,700 Trucks 186,000 Accumulated depreciation
    5·1 answer
  • "Northern Region unit sales 25,200 37,200 Southern Region unit sales 27,200 28,600 Total 52,400 65,800 The finished goods invent
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!