Carl Cornfield purchases equipment for $450. After reducing the cash line where else would Carl put an entry for this purchase?

USA Manufacturing issued 30-year, 7.5 percent semiannual bonds 6 years ago. The bonds currently sell at 101 percent of face valu

vekshin1

Answer:

4.82 percent

Explanation:

We use the Rate formula in this question that is shown in the attachment

The NPER is the period of time.

Provided that,

Present value = $1,000 × 101% = $1,010

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 7.5% ÷ 2 = $37.5

NPER = 30 years - 6 years = 24 year × 2 = 48 years

The formula is presented below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is 7.41%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.41% × ( 1 - 0.35)

= 4.82%

6 0

3 years ago

The Rogers Corporation has a gross profit of $704,000 and $333,000 in depreciation expense. The Evans Corporation also has $704,

Reil [10]

Answer:

a. Cash Flow Rogers = $441,000

Cash Flow Evans = $327,520

b. $113,480

Explanation:

The computation of the cash flow for both companies are shown below:

a. For Cash Flow Rogers

= Gross profit - Selling and administrative expense - income tax expense + depreciation expense × tax rate

where,

Income tax expense = (Gross profit - Selling and administrative expense) × income tax rate

= ($704,000 - $191,000) × 40%

= $205,200

And, the other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= $704,000 - $191,000 - $205,200 + $333,000 × 40%

= $307,800 + $133,200

= $441,000

For Cash Flow Evans

= Gross profit - Selling and administrative expense - income tax expense + depreciation expense × tax rate

where,

Income tax expense = (Gross profit - Selling and administrative expense) × income tax rate

= ($704,000 - $191,000) × 40%

= $205,200

And, the other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= $704,000 - $191,000 - $205,200 + $49,300 × 40%

= $307,800 + $19,720

= $327,520

b. The computation of the difference in cash flow between the two firms are shown below:

= Cash Flow Rogers - Cash Flow Evans

= $441,000 - $327,520

= $113,480

5 0

3 years ago

At an annual effective interest rate of i, i > 0, the following are all equal: (i) the present value of 10,000 at the end of

iVinArrow [24]

Answer:

PV = 1414

Explanation:

The pictures attached below shows the full explanation for the problem and it is so explanatory. i hope it helps you, thank you

5 0

3 years ago

Assume the spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. What is the minimum price that a six-month Ame

Rama09 [41]

Answer:

2 cents

Explanation:

The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents

The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175

The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)

Minimum price = Maximum (2 , 1.47, 0) = 2 cents

4 0

4 years ago

Whole number less than 20

bearhunter [10]

Answer:

Explanation:

The first 100 whole numbers are 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74

7 0

3 years ago