Answer:
b. 8.225%
Explanation:
The rate formula will be used to solve this question.
Please note that the NPER represents the time value.
Where;
Present value is $754.08
Let's assume that the face value is $1,000
PMT= 1,000 x 7.25% ÷2
=$36.25
NPER= 9 years x 2
= 18 years
The formulae is therefore
Rate(NPER,PMT,-,PV,FV)
The value of the present value is negative.
a. The pretax would therefore be 11.75%
b. After tax cost of debt would be ;
Pretax cost of debt x (1 - tax rate)
11.75% x (1 - 30%)
11.75% x (1 - 0.03)
=8.225%.
Answer:
Elementary Education → Accounting → Pharmacy → Crop Production
Explanation:
According to the employment statistics, Elementary education employs the least, and Crop production employs the largest number.
Answer: $6,000
Explanation:
When expenses such as this interest expense are for 12 months or more, the deduction will need to be evenly spread over the period that they apply to. As the loan was to be repaid in 24 months, the interest payment deductions should be evenly spread over 24 months.
= 12,000/24
= $500
That means that for Year 2, the relevant deduction will be for the 12 months in it;
= 500 * 12
= $6,000
Answer: $50
Explanation:
We can use the Gordon Growth Model of Stock Valuation. The formula is thus,
P = D1 / r – g
D1 = the annual expected dividend of the next year
r = rate of return
g = the expected dividend growth rate (assumed to be constant)
There is no growth potential and dividends are expected to stay the same so no growth rate and D1 will be the same as D0.
Plugging that into the formula therefore will give us
P = D1/r
P= 4.5/0.09
= $50
Current Stock Price is $50.
