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
Rashid [163]
2 years ago
5

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual

payment ($45 payment every 6 months). The bonds currently sell for $896.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
andreev551 [17]2 years ago
6 0

Answer: 7.67%

Explanation:

To solve this, the financial calculator will be needed

Present value = -896.87

Future Value = 1,000

N = [(25 - 5years) × 2 = 40

PMT = $45

Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%

Then, the the firm's after-tax cost of debt will be:

= (5.11% x 2 )(1 - 0.25)

= (0.0511 × 2) (0.75)

= 0.07665

= 7.665%

= 7.67%

You might be interested in
As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider i
rewona [7]

Communication, ethics, conflict management, learning, and inclusion are some issues to consider when leading a multicultural and diversified workforce in Ghanaian business organizations.

<h3>How do you lead a multicultural team?</h3>

In order to foster a culture that celebrates variety and individuality, it is crucial that there be a number of rules and procedures that concentrate on organizational ethics. The manager must be aware of the requirements of the teams, encourage learning, and include the staff in organizational procedures.

Therefore, the sharing of knowledge, learning, and creativity can benefit from a diverse culture.

To learn more about the multicultural team here: brainly.com/question/27249388

#SPJ10

4 0
2 years ago
For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of t
babymother [125]

Answer:

Billy's mom increases his weekly allowance by $ 55 . As a result, Billy increases the number of apps he downloads on his smartphone.

If with increase in income demand increases, the good will be a normal good. Thus, apps that billy downloads are normal goods.

Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are: Inferior goods

Here with increase in income, the demand for a commodity falls, the so called commodity is a inferior good. Thus, in this case frozen pizzas are inferior goods.

Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is: Inferior goods

If there is a fall in income and thus demand increases, the good is inferior. Thus, in this case generic cereal is an inferior good.

Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are: Normal goods

If there is a decrease in income and thus demand falls, the good is normal. Thus, smoothies as commodity in this case will be refereed to as normal goods.

5 0
3 years ago
Business operations Essay​
juin [17]

Answer:

The description of the given term "Business operations" is provided below.

Explanation:

  • Together with all measures essential to manage as well as generate money besides your firm, is considered as business operations.
  • Sometimes a component devoted to the industry would be included throughout the marketing strategies, enough so founding members comprehend or recognize the authoritarian leadership style, machinery, personnel, including procedures.
6 0
3 years ago
Mijka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1
yaroslaw [1]

Answer:

Mijka Company

a. Journal Entries

Debit Cash $30,400

Credit Service Revenue $30,400

To record the proceeds for services provided.

Debit Expenses $13,800

Credit Cash $13,800

To record the payment of cash for services.

Debit Dividend $2,100

Credit Cash $2,100

To record the payment of cash dividend.

b. Income Statement for the year ended December 31, 2018:

Service Revenue     $30,400

Expenses                   13,800

Net Income             $16,600

Dividends                   (2,100)

Retained earnings $14,500

Statement of Changes in Stockholders' Equity as of December 31, 2018:

Retained Earnings    $14,500

Balance Sheet as of December 31, 2018:

Assets:

Cash                       $14,500

Equity:

Retained Earnings $14,500

Explanation:

a) Data and Calculations:

Cash revenue $30,400

Cash expense  (13,800)

Cash dividend    (2,100)

Cash balance  $14,500

5 0
2 years ago
A misconception is a mistaken idea or thought.
e-lub [12.9K]
This is true, it is a misunderstandment
8 0
3 years ago
Other questions:
  • Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that B
    10·1 answer
  • Which statement is false?
    7·1 answer
  • The client is prescribed an antibiotic for a streptococcal infection and asks the health care practitioner whether the medicine
    9·1 answer
  • Clark Manufacturing manufactures a product with a standard direct labor cost of twohours at $12.00 per hour. During July, 2,000
    12·1 answer
  • Suppose a shortage in materials results in decrease in the supply of golf balls in the United States of 5%. If the elasticity of
    9·1 answer
  • Brian holds a meeting with all the managers in the company to identify a strategy for business growth. He tells the managers tha
    9·1 answer
  • Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to
    9·1 answer
  • Laramie Corporation has acquired a property that included both land and a building for $ 570 comma 000. The corporation hired an
    12·1 answer
  • Milton Friedman argues that __________.
    13·1 answer
  • 2. using dataset d1a as a basis for discussion, which online channels generate the most reviews about accorhotels? to what exten
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!