Answer:
Explanation:
Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;
N = 5*2 = 10
PV = -(95% *10,000,000) = -9,500,000
Coupon PMT = (6%/2)*10,000,000 = 300,000
FV = 10,000,000
then compute semiannual rate; CPT I/Y = 3.604%
convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)
After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;
Aftertax cost of debt = pretax cost of debt (1-tax)
AT cost of debt = 7.21% (1-0.40)
AT cost of debt = 4.33%
Answer:
$4,292,699.99
Explanation:
Calculation to determine How much in new fixed assets are required to support this growth in sales
Full capacity sales = $800,000/0.95 = $842,105.26
Capital intensity ratio = $480,000/ $842,105.26 = 0.57000000
Fixed asset need = ($890,000 × 0.57000000) - $480,000 = $4,292,699.99
Answer:
equity = 45,800
Explanation:
working capital: current assets - current liaiblities = 41,300
net book value of long term assets: 97,400
long term debt 102,800
we will work with the accounting formula to solve for equity:
assets = liaibltiies + equity
we divide assets and liabilities in current and non-current:
current assets + long term assets = current liabilities + long-term debt + equity
we rearrenge the formula in order to sovle for equity:
(currnet asets - current liabilities) + long term assets - long-term debt = equity
41,300 + 97,400 - 92,900 = equity
equity = 45,800
Answer:
Correct answer is (a). adding a significant buffer to each activity
Explanation:
Realistic time estimates for project is an essential skill required by project management team to estimate required time for a component or whole project to be completed. It is expressed in person hour. Adding a significant buffer to each activity in project management does not required by team to estimate the time required to complete project.
Answer: c) $1,169,408.
Explanation:
Given the following:
Consumer price index(CPI) :
Year 1 = 1931 = 15.2
Year 2 = 2015 = 237
Salary in 1931 = $75,000
Equivalent salary in 2015 Given the details above:
Salary in 1931 × (CPI for year 2(2015)/ CPI for year 1(1931))
$75,000 × ( 237 / 15.2)
= $75,000 × 15.592105
= $1,169,407.8
= $1,169,408
