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:
A Public Company is owned and traded publicly on the stock exchange. A Private Company is owned and traded privately. Limited can use after the public company name (Example- ABC Limited). Private Limited can be used after the private company name.
based on the information provided, $60,000 amount will be included as investment in saturn corporation in the consolidated balance sheet immediately following the acquisition.
The Saturn Corporation, often known as Saturn LLC, was a General Motors subsidiary that began operations as an American automaker on January 7, 1985. In the beginning, the company was GM's attempt to directly compete with Japanese imports and transplants in the US compact car market. The company advertised itself as "a different kind of automotive company,"and it operated essentially autonomously from its parent company. introducing a new car, dealer network, pricing strategy, workforce, and independently run manufacturing facility in Spring Hill, Tennessee, in its entirety . Five years after the company's founding, the first automobiles themselves were launched, and they improved GM's spaceframe design while also demonstrating Saturn's value offer thanks to its dent-resistant polymer outer panels.
learn more about Saturn Corporation here:
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Answer:
(A) $ 2,602.34
(B) $ 4,156.97
(C) $ 8,233.47
(D) $ 46,796.64
Explanation:
We need to solve for the PMT of an ordinary annuity:
(A)
FV 24,850
time 8
rate 0.05
C $ 2,602.337
(B)
FV 1,030,000
time: 43
rate 0.07
C $ 4,156.972
(C)
FV 856,000
time 29
rate 0.08
C $ 8,233.466
(D)
FV 856,000
time 14
rate 0.04
C $ 46,796.641
Answer:
the net present value is $11,961
Explanation:
The computation of the project NPV is as follows;
The net present value is
= Present value of cash inflows - initial investment
= $8,000 × PVIFA factor for 11 years at 10% - $40,000
= $8,000 × 6.4951 - $40,000
= $51,961 - $40,000
= $11,961
Hence, the net present value is $11,961
The same is to be considered
