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riadik2000 [5.3K]
2 years ago
11

issues new bonds to fund an acquisition. The face value of the bond is $100 and annual coupon is 6.5%. Further, this bond mature

s in 20 years and is issued at a price of $105. Assuming KJ Pharma's tax rate is 30%, what is its After-Tax Cost of Debt
Business
1 answer:
grandymaker [24]2 years ago
7 0

Answer:

KJ Pharma Corporation

KJ Pharma's after-tax cost of debt is:

= 4.55%.

Explanation:

a) Data and Calculations:

Face value of the bond = $100

Annual coupon rate (cost of debt) = 6.5%

Maturity period of bond = 20 years

Tax rate = 30%

After-Tax Cost of Debt = 6.5 (1 - 0.3)

= 4.55%

b) KJ Pharma's after-tax cost of debt is the interest paid on the bond less any income tax savings accounted for as deductible interest expenses. To calculate the after-tax cost of debt, KJ subtracts the company's effective tax rate from 1 and multiplies the difference by its cost of debt.

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Relationship-enhancing attributions involve which of the following factors?
Blizzard [7]

Relationship-enhancing attributions involve Giving credit for positive actions and excusing transgressions.

Explanation:

Relationship-enhancing features happen when people place greater responsibility for the positive behavior on their relationships and less responsibility for the negative behavior of their partners.

If your partner brought you flowers, that's because he's sweet and sweet. But that's because he's caught in the traffic (something he wouldn't control when he's slow for a date).

In special relationship research, attributions are frequently divided into two classifications: attributions that "improve relationship" and attributions that "maintain distress" (Bradbury & Fincham, 1990), respectively.

7 0
3 years ago
A congress woman from a state with several ball-bearing factories explains that it is necessary to impose trade restrictions, su
torisob [31]

Answer:

C. Jobs argument

Explanation:

The job preservation argument is brought up by unions to look out for union jobs.

7 0
3 years ago
Daniel ordered 64 cases of oil for his store. Each case had 254 bottes of oil. Thirty-
AlekseyPX

Answer:

$ 5,625

Explanation:

Each case contained 254 bottles

Costs per case

High grade: @$225

Lower grade-grade: @ $150

Daniel is paying for what arrived only. He received

19 case of high grade

9 cases of lower-grade

The amount that Daniel paid:

For high grade: = 19 x $225 = $ 4,275

For lower-grade = 9 x $150 = $ 1, 350

Total amount = $ 5,625

8 0
3 years ago
Barney builds custom wooden birdhouses. he can make 150 birdhouses per month and sell them for $50 each. his average total cost
musickatia [10]

Answer:

125 birdhouses per month

Explanation:

Barney=150 birdhouses

Total product=150 birdhouses

If Barney hires Fred

Fred =125 birdhouses

Total product=150+125

=275 birdhouses

Marginal product can be defined as a change in output as a result of a change in variable inputs

It can be calculated as follows

Marginal product=change in total product/change in variable inputs

=275-150/1

=125/1

=125 birdhouses per month

4 0
3 years ago
Departmental managers at Global Industries are required to maintain written records of highly favorable and unfavorable employee
Lemur [1.5K]

Answer:

1. Critical incidents

Explanation:

Performance appraisal method involves various techniques used in measuring the effectiveness and efficiency of workers in an organization. One of those method of performance appraisal is the use of Critical Incidents. Critical incidents involves the analysis of an employee behaviour towards certain events indicating how well he did, where he could do better and the ones he did well in. It involves the employer/manager or whoever collects the performance ratings keeping a log or data of both the negative and positive behavior of the employee work actions.

8 0
3 years ago
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