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
lozanna [386]
2 years ago
6

Beckham Corporation has semiannual bonds outstanding with 13 years to maturity and the bonds are currently priced at $746.16. If

the bonds have a coupon rate of 8.5%, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%?a. 6.250%.b. 12.890%.c. 12.500%.d. 8.125%.
Business
1 answer:
Artyom0805 [142]2 years ago
6 0

Answer:

d. 8.125%.

Explanation:

The computation of the after tax cost of debt is shown below:

Given that

NPER = 13 × 2 = 26

PMT = $1,000 × 8.5% ÷ 2 = $42.50

Assume future value would be $1,000

Present value is $746.16

The formula is given below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the rate is

= 6.25% × 2

= 12.50%

Now the after tax cost of debt is

= 12.50% × (1 - 0.35)

= 8.125%

Hence, the correct option is d. 8.125%

You might be interested in
Project selection helps to ensure that no project affect the status of other
kirza4 [7]

Answer:

<u>projects</u>

Explanation:

Remember, among the 'Project selection' stage is the first stage of the Project Process Stages. This stage typically involves examining each project and then determining which is of utmost importance.

Rather than trying to run every uncompleted project with the limited resources available which may affect the status of other projects, it is better to select the project that is most beneficial and that is feasible to complete within the stipulated deadline.

3 0
3 years ago
Arianna just made another fantastic​ investment: She purchased 400 shares in Great Gains Corporation for ​$20.0920.09 per share.
Gwar [14]

<u><em>Answer:</em></u>

<u><em>1. Likely the price of the stock either goes up or falls</em></u>

<u><em>2. There is no need for a stop loss order in this scenario.</em></u>

<u><em>3. 5412541.2</em></u>

<u>Explanation</u>:

1. Stock market prices are often  unstable, prices can be up today, the next day they are low.

2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.

3. A 10% Stop loss price would have been the idea order price rather than the ​$53.7353.73​.

4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a <em>calculated level </em>of  should be carefully decided.

8 0
3 years ago
Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question par
swat32

Answer:

$96,870

Explanation:

The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.

If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.

Therefore, 2017 corrected net income

= $89,770 + $7,100

= $96,870

4 0
3 years ago
joelle consumes food and clothing. for incomes near her current income, her income expansion path is negatively sloped. indicate
tekilochka [14]

Joelle consumes food and garb. for earning near her modern-day income, her earnings expansion direction is negatively sloped. <u>Increasing </u><u>much less of 1 god whilst profits growth implies consuming extra of the opposite three .at the least one proper must be every day.</u>

The term “profits” commonly refers to the quantity of money, property, and different transfers of price acquired over a set time period in change for products or services. there may be no unmarried, preferred definition: earnings are described consistent with the context in which the idea is used.

Three of the main varieties of profits are earned passive, and portfolio. Earned income consists of wages, salary, tips, and commissions. Passive or unearned earnings may want to come from condominium homes, royalties, and restricted partnerships. Portfolio or funding income includes interest, dividends, and capital gains on investments.

Learn more about capital investments here:-

brainly.com/question/20360874

#SPJ4

7 0
1 year ago
In previous years, Cox Transport reacquired 2 million treasury shares at $22 per share and, later, 1 million treasury shares at
Hoochie [10]

Answer:

24 million shares  ; $16 million

Explanation:

The computation of the weightage number of treasury shares are shown below:

             Number of shares       Price       Total

                   2                              $22         $44 million

                   1                               $28         $28 million

Total           3                                               $72 million

So, the weighted average number of shares would be

= $72 ÷ 3 = 24 million shares

Now the journal entry would be

Cash A/c Dr $64 million                  (2 million treasury shares × $32)

          To Paid in capital - share repurchase A/c $16 million

          To Treasury stock $48 million    (24 million treasury shares × $2)

(Being the treasury shares are sold)

4 0
3 years ago
Other questions:
  • Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicates that
    7·1 answer
  • The following items and amounts were taken from Wildhorse Co.’s 2017 income statement and balance sheet.
    10·1 answer
  • Accountants use only _____ costs in their computations of short-run total cost.
    14·1 answer
  • Becoming informed about economics helps a person understand the
    15·2 answers
  • A bank account has an initial balance of $450. The account holder deposits $125 every week. How many weeks (excluding any intere
    15·2 answers
  • Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of
    6·1 answer
  • TB MC Qu. 7-77 Corbel Corporation has two divisions: Division A and ... Corbel Corporation has two divisions: Division A and Div
    14·1 answer
  • The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inven
    14·1 answer
  • Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been cl
    12·1 answer
  • Medium:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!