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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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Based on predicted production of 17,000 units, a company anticipates $255,000 of fixed costs and $216,750 of variable costs. The
Arturiano [62]

Answer:

fixed costs = $255,000

variable costs = (15,000 / 17,000) x $216,750 = $191,250

Explanation:

A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.

Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.

6 0
3 years ago
For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units
Anna71 [15]

Answer:

The product cost for 24,500 units is $497,350.

Explanation:

The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.

Direct materials (24,500 * $7.7 per unit)                               $188,650

Direct labor (24,500 * $4.7 per unit)                                       $115,150

Variable manufacturing overhead (24,500 * $2.2 per unit)  $53,900

Fixed manufacturing overhead (24,500 * $5.7 per unit)      <u>$139,650 </u>

Total product costs                                                                 $497,350

7 0
2 years ago
A manager has a gut feeling that some members are contributing more to the organization than other members. The first step the m
balandron [24]

Answer: This certain manager should be able to reach out to other the employes to join more organizations. I think that if these other employees are contributing to more organization than others, Then they will  be more selected. The other employees that are not contributing will certainly be fired. Thanks this is my way of reasoning:)

4 0
3 years ago
When writing a message to express condolences, you should mention the loss tactfully, recognize the good qualities of deceased,
Romashka-Z-Leto [24]

When writing a message to express condolences, you should mention the loss tactfully, recognize the good qualities of deceased, assure the receiver of your concern, offer assistance, and <u>conclude on a reassuring note.</u>

Explanation:

Certain points that are to be kept in Mind when writing a  Condolence Messages  are:

  • Don't unintentionally say the wrong thing in a sympathy message
  • The Condolence message should be short and crisp
  • In the message try to recall a funny memory of the deceased.
  • In the message ,you should not simply sign rather mention your full first and surname.
  • Don't mention any financial obligation of the deceased or offer any financial help
  • Don't try to offer any other help like cooking a good meal

Thus we can say that ,When writing a message to express condolences, you should mention the loss tactfully, recognize the good qualities of deceased, assure the receiver of your concern, offer assistance, and <u>conclude on a reassuring note.</u>

3 0
3 years ago
Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. H
AURORKA [14]

Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect

Explanation:

From the information given in the question, the journal entry at the time of sales will be represented as:

Debit Accounts receivable $1,750

Credit Sales $1750

Now, when the credit receipt is received as illustrated in the question, the journal entry will be:

Debit Cash $1,750

Credit Accounts receivable $1,750

Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.

The correct option is B.

7 0
2 years ago
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