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ivanzaharov [21]
2 years ago
9

If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if

the income tax rate is 30%?
Business
1 answer:
Anni [7]2 years ago
8 0

Answer:

$210,000

Explanation:

Cost of Borrowings (Interest expense) = Amount of Borrowings * Rate of Interest = $3,000,000 * 10% = $300,000

Tax on Borrowings = Cost of Borrowings * Rate of tax = $300,000 * 30% = $90,000

Net Cost of Borrowings = Cost of Borrowings - Tax on Borrowings

Net Cost of Borrowings = $300,000 - $90,000

Net Cost of Borrowings = $210,000

So, the annual net cash cost of this borrowing if the income tax rate is 30% is $210,000.

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9. Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that appl
atroni [7]

Answer:

The answer is: Stock markets reflect all available information about the value of stocks

Explanation:

Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.

7 0
3 years ago
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s pro
VLD [36.1K]

Answer:

raw materials    197900

accounts payable   197900

WIP   161830

factory overhead   5270

raw materials   167100

WIP   85500

factory overhead   7600

wages payables   93100

factory overhead   53000

accounts payable   53000

factory overhead   17150

acc. Dep-equipment   17150

dep expense*   14800

acc. Dep- Off Building   14800

WIP**   70965

factory overhead   70965

Finished Goods***   251747

WIP inventory   251747

Explanation:

* as the building is not related to the manufacturing process we cannot capitalized through inventory We will record as cost ofo the period therefore, depreciation expense

** the aplied overhead will be the amount of direct labor added during the period time 83%

85,500 x 83% = 85,500 * 0.83 = 70,965

*** we will have to add up the jobs cost to detemrinate how much of the work in process inventory becomes finished good

Job  Materials // Labor // Overhead

A20 $  37,740  $  19,200 + 19,200 x 0.83

A21  $ 44,320  $ 23,600 + 23,600 x 0.83

A23 $  41,770   $  27,100  + 27,100 x 0.83

Total 251,747

4 0
3 years ago
What is a stock dividend? and im not sure how to calcuate the monthly payment.
maksim [4K]

Answer:

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3 years ago
The term ssr/ss total is also called the select one:
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Answer : coefficient of determination.

In the regression analysis results on MS excel the SSR/ SS total is called as " coefficient of determination"

6 0
3 years ago
Any person who knowingly submits false claims to the government is liable for five times the government's damages caused by the
Alina [70]
The statement above is FALSE.
The correct sentence is this: Any person who knowingly submit false claims to the government is liable for THREE TIMES the government damages caused by the violator plus a penalty. This means that the violator will three fold of the damages he causes not five folds.
7 0
2 years ago
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