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castortr0y [4]
3 years ago
7

Your firm has a bond issue with a face value of $250,000 outstanding. These bonds have a coupon rate of 7 percent, pay interest

semiannually, and have a current market price equal to 103 percent of face value. What is the amount of the annual tax shield on debt given a tax rate of 21 percent
Business
1 answer:
trapecia [35]3 years ago
7 0

Answer:

$3,675

Explanation:

Calculation to determine the amount of the annual interest tax shield

Using this formula

Annual interest tax shield=Outstanding face value*Coupon rate*Tax rate

Let plug in the formula

Annual interest tax shield = $250,000 *.07 *.21

Annual interest tax shield= $3,675

Therefore the amount of the annual interest tax shield is $3,675

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4 0
2 years ago
At what value should the land be recorded in clementine repair service records?
adell [148]

Answer: $369,500

Explanation:

The Cost concept of accounting calls for the recording of Assets at their cost.

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They should therefore record it at $369,500.

6 0
3 years ago
I am having trouble with this question. Can you help me out?
Semmy [17]

Answer:

ok I can help but will is the question.◉‿◉

6 0
3 years ago
You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your c
Fofino [41]

Answer:

You're having trouble coping with stressful life events, so you begin seeing a therapist. The therapist does not focus on your childhood experiences or on any learned behaviors, but rather she emphasizes the importance of your need for love and acceptance. Her approach is BEST described as reflecting  humanistic psychology.

Explanation:

Humanistic psychology is focused on each individual's potential and stressed the importance of growth and self-actualization.

8 0
3 years ago
One of the major shortcomings of organizational charts is that they do not recognize the role of _____ when they depict authorit
Snezhnost [94]

Answer:

b. ​horizontal communication

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8 0
3 years ago
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