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
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

You might be interested in
A country's export ratio is Group of answer choices The ratio of imports to GDP. The ratio of imports to exports. The ratio of t
Assoli18 [71]

A country's export ratio is the ratio of imports and exports.

<h3>What is the export ratio?</h3>

Export ratio is the ratio of import to export. Export would comprise of goods and services produced in the US that are been sold to foreign countries. Import would comprise of foreign produced goods and services that are been sold in the US

To learn more about imports, please check: brainly.com/question/26497713

#SPJ1

4 0
2 years ago
1. The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding
77julia77 [94]
I don’t really know. But I think it’s b
7 0
3 years ago
For whom were the first ready-to-wear suits made in America?
Naya [18.7K]

c. Sailors would be the correct answer

3 0
3 years ago
Lundy Company purchased a depreciable asset for $99,000 on January 1. The estimated salvage value is $18,000, and the estimated
Mariulka [41]

Answer:

$16, 988.4

Explanation:

The asset has a useful life of 9 years. the straight-line rate of depreciation is 1/9 X 100 = 11 per cent

the cost of the asset is $99,000

First-year depreciation under double-declining will be

Straight-line method rate x 2= 22 %

= 22/100 x 99,000

=0.22 x 99,000

=21,780

the book value after the first year will be 99,000 -21, 780

= 77,220

Depreciation expense for the second year = 22 % of 77,220

=22/100 x 77,220

=$16, 988.4

7 0
3 years ago
Monthly sales are​ $530,000. Warranty costs are estimated at​ 5% of monthly sales. Warranties are honored with replacement produ
sashaice [31]

Answer:

C. Estimated warranty payable for $26,500.

Explanation:

The monthly sales are $530,000 and the warranty costs are 5% of monthly sales,

Therefore, Warranty costs will be = $530,000*5% = $26,500.

Now, we know that no defective products were returned during the current month, hence the other options in the questions are discarded and Estimated warranty payable is taken at the month end.

Thank buddy.

Good luck and Cheers.

8 0
3 years ago
Other questions:
  • Nora was thinking about something else the day her teacher explained the difference between the words "between" and "among," so
    5·1 answer
  • In 20X8, the following pledges were made: $35,000 in unrestricted contributions for use in 20X8; $20,000 in contributions restri
    6·1 answer
  • At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following state
    9·1 answer
  • Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week
    14·1 answer
  • Sherman Peabody earns a monthly salary of ​$1,500​, which he receives at the beginning of each month. He spends the entire a
    13·1 answer
  • Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette indust
    10·1 answer
  • For several years in a row, the east coast cities of the nation suffered extremely cold winters. Demand for home heating oil was
    10·1 answer
  • Recalling the competency pyramid studied in this chapter, what is the difference between a personal competency and an academic c
    6·1 answer
  • hatch pattern optimization of powder bed fusion additive manufacturing process for minimizing flatness error
    7·1 answer
  • the market price of northern mills stock has been relatively volatile and you think this volatility will continue for a couple m
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!