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Fortune 500 Companies: A ranking of the 500 largest US firms, ordered by total revenues for each fiscal year, is known as the Fortune 500.
The US Based fortune 500 company that can be selected for analysis and which has issued Outstanding Bonds is Microsoft Corporation.
Outstanding Bonds: These are those bonds that have been already issued but have not yet matured or redeemed.
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Answer:
d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan
Explanation:
interests paid to debt holders = $13,500,000 x 10% = $1,350,000
generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).
under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.
under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $66,000
Salvage value= $5,700
Useful life= 6
F<u>irst, we need to calculate the annual depreciation using the following formula:</u>
<u></u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (66,000 - 5,700) / 6= 10,050
<u>2017:</u>
Annual depreciation= (10,050/12)*3= $2,512.5
<u>2018:</u>
Annual depreciation= $10,050
Currency that derives its value from the amount printed on it is known as fiat money.
<h3>What is fiat money?
</h3>
Fiat money is currency whose value is not backed up by any asset. The value of fiat money is dependent on the amount printed on it. This differs from representative money whose value depends on the value of the metal from which it is made from.
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