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
Serga [27]
3 years ago
9

PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08.

If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of d
Business
1 answer:
Nezavi [6.7K]3 years ago
3 0

Answer:

The after-tax cost of debt is 8.22%

Explanation:

The cost of debt is the actual cost of a business to raise debt finance. Yield to maturity is the cost of debt of a bond.

calculate the YTM as follow

Coupon = $1000 x 7.25% x 6/12 = $36.25

Number of periods = 9 yeas x 12/6 = 18 periods

Use the financial calculator as below

2nd I/Y 2, FV 1000, PMT 36.25, PV -754.08, N 18, CPT I/Y

Yield to maturity = 11.7499%

Now calculate the after tax YTM

YTM ( after tax ) = 11.7499% x ( 1 - 30% )

YTM ( after tax ) = 8.22%

You might be interested in
Curtain Co. paid dividends of $10,000, $12,500, and $14,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,1
4vir4ik [10]

Answer:

Total amound paid to shareholder in 3rd year = $1850

Explanation:

Below is the calculation:

Total dividend paid = 1st year divident  + 2nd year divident + 3rd year dividend

Total dividend paid = $10000 + 12500 + 14000

Total dividend paid = $36500

Total preferred dividend = (2100 x 100) x 5.5% x 3

Total preferred dividend = $34650

Total amount of dividend paid to shareholder during 3rd year = 36500 - 34650 = $1850

Total amound paid to shareholder in 3rd year = $1850

8 0
3 years ago
Grassroots lobbying includes __________. using high-paid professionals to contact legislators testifying at government hearings
Julli [10]
<span>Grassroots lobbying, so called because it is carried out on the most basic level, includes urging group members to contact legislators. Such an action is designed to convince legislators of the breadth of concern and attention for a given issue on the part of private individuals.</span>
4 0
3 years ago
ABC Company’s budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 units, respectively. ABC requires 30% of
igor_vitrenko [27]

Answer:

= $52,050

Explanation:

First, the question is as follows:

Calculate the number of pounds of raw material to be purchased in June

Solution

Step One: We determine what was produced in June and in July  as follows

Budgeted Production = Budgeted sales + The desired closing inventory of finished products - the estimated opening inventory of finished products

  • Budgeted Production in June= $15,600 +  (0.3 x 19,600) - $4,680 (This is the ending inventory figure from May) = $16,800
  • Budgeted Production in July= $19,600 - (17,600 units x 0.3)- $5,880 (this is the opening inventory calculated for June above) = $19,000

Step 2 : Determine the Purchased raw materials for June

  • = (Production in June x 3) + Production in July x 3 x 0.25) - (Production in June x 3 x 0.25)

= 50,400 + $14,250 - $12,600 = $52,050

4 0
3 years ago
How does a repo differ from a fed funds transaction? how do their rates compare?
alexgriva [62]

A repo is basically a collateralized loan, whereas Fed funds are uncollateralized

<h3>What is  collateralized loan?</h3>

Collateralized loan obligations are a type of securitization in which payments from many small and big business loans are pooled and distributed to different classes of owners in different tranches. A collateralized debt obligation (CLO) is a type of debt obligation.

The use of a valuable item as collateral to obtain a loan is known as collateralization. If the borrower fails to repay the debt, the lender may seize and sell the asset to make up the difference. Asset collateralization offers lenders with some protection against default risk.

Collateral is a valuable object used to secure a loan. Lenders' risk is reduced by collateral. If a borrower fails on a loan, the lender can seize and sell the collateral to recuperate its losses.

To know more about  collateralized loan follow the link:

brainly.com/question/14997152

#SPJ4

3 0
2 years ago
Anthony and cathy jones have been married for twenty-seven years. they have always had a joint bank account, discuss big expendi
PilotLPTM [1.2K]
The answer to this question is "EGALITARIAN". Such as when Anthony and Cathy Jones have been married for twenty-seven years already. They have always had a joint bank account, they have also discussed big expenditures before making and implementing them and the share household duties have been cleared to both. This Jones family is an example of an EGALITARIAN family.
3 0
3 years ago
Other questions:
  • Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Tot
    5·2 answers
  • Classical economics is based on the principle that prices:a. remain constant even in the face of shocks that cause excessiveunem
    14·1 answer
  • Known as ____, procedures for regaining control of systems and restoring operations to normalcy are the heart of the ir plan and
    5·1 answer
  • Current Attempt in Progress Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A cond
    11·1 answer
  • If $1,000,000 of 9% bonds are issued at 102 3/4, the amount of cash received from the sale is
    9·1 answer
  • According to the Uniform Commercial Code, if the original agreement requires any modification to be in writing, an oral modifica
    8·2 answers
  • Can somone answer my previous question?
    13·1 answer
  • What is the primary concern of the international monetary fund?
    7·2 answers
  • The revenue manager at the 133-room Big Bluff Bunkhouse Hotel noticed that, based on information from the past several years, th
    13·1 answer
  • Fill the blank ("__")
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!