Answer:
II. Prevention costs are costs that are incurred to prevent the sale and production of defective units.
Answer:
5.71%
Explanation:
The after tax cost of debt=pretax cost of debt*(1-t)
where t is the tax rate of 35% or 0.35
pretax cost of debt=yield to maturity
The yield to maturity can be determined using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years
pmt is the annual coupon=$1000*9.5%=$95
pv is the current market price-flotation cost=$1,100-$48=$1052
fv is the face value of $1000
=rate(12,95,-1052,1000)=8.78%
After tax cost of debt=8.78%
*(1-0.35)=5.71%
<span>Henry Company should record the rent expense on August 2. Although the check was prepared on July 25 and mailed on July 27, it should not be recorded until the check is actually cashed.</span>
Answer:
The total monthly payments that are deductible by Duron are:
$1,200 each month for the next 10 years.
Explanation:
According to the IRS rules, if Duron pays his ex partner payments each month which are not documented by the court, the money is not tax deductible. Therefore, it is beneficial for Duron to receive a court order to pay the additional alimony if Duron plans on enjoying a tax deduction for the additional spousal support of $200.
Answer 5,000 is the maximum dividend that can be paid to shareholders.
Explanation:
