Answer: $13,020,000
Explanation:
Given that,
Tax rate = 30%
Total interest payment for the year just ended = $43,400,000
Interest Tax Shield = Tax rate × Total interest payment
= 30% × $43,400,000
= 0.30 × $43,400,000
= $13,020,000
Therefore, the interest tax shield is $13,020,000.
Answer:
the issue price of the bonds is $593,177
Explanation:
The computation of the issue price of the bonds is shown below:
Particulars Amount PV factorat 5% Present value
Semi-annual interest $28,350 11.68959 $331,400
Principal $630,000 0.41552 $261,778
Total $593,177
hence, the issue price of the bonds is $593,177
Answer:
Cost of equity capital can be found by the Capital asset pricing model:
Cost of capital
= Risk free rate + beta * market premium
= 2% + 0.8 * 10%
= 10%
Weighted Average Cost of Capital:
= (weight of debt * after tax cost of debt) + (weight of stock * cost of stock)
= (50% * 8% * ( 1 - 34%)) + (50% * 10%)
= 10.28%
Answer:
cash payments for merchandise total is $44,000
Explanation:
purchase for the year
Beginning Investment + Purchases - Ending Investment = Cost of Merchandise sold
13,500 + Purchases - 10,500 = 45,000
Purchases = 42,000
Therefore, the total cash paid for merchandise
Beg. A/P + Purchases - End. A/P = Cash Paid
7,000 + 42,000 - 5,000 = $44,000
Answer:
there not really my style! but i say #1 :) have a great day gorgeous.
Explanation:
