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mina [271]
3 years ago
9

Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annu

al coupon that is paid semiannually. the bond currently sells for $925, and the company's tax rate is 40%. what is the component cost of debt for use in the wacc calculation?
Business
1 answer:
vladimir2022 [97]3 years ago
4 0
4.65% is the component cost of the debt for use in the wacc calculation
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The Van Horns deposit funds with ABC Escrow as a requirement for the purchase of their new home. Who is the grantee and the thir
Gwar [14]

Answer:

This is an escrow transaction. An escrow is an arrangement where a third party (ABC Escrow) holds funds for a given transaction between other two parties.

The Van Horns are the grantees in this transaction.  

The escrow is responsible for the safe keeping of the funds, in order to avoid any type of loss or fraud.

5 0
3 years ago
Bengal Co. provides the following sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560
nydimaria [60]

Answer:

Total production= 5,840 units

Explanation:

Giving the following information:

Sales in units:

July= 5,000

August= 5,700

September= 5,560

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. The finished goods inventory on June 30 is 1,250 units.

To determine the production for August, we need to use the following structure:

Production budget:

Sales= 5,700

Desired ending inventory= (5,560*0.25)= 1,390

Beginning inventory= (1,250)

Total production= 5,840 units

7 0
3 years ago
What can cause the market demand curve for day-old bread -- an inferior good -- to shift rightward (an increase in demand)
Sedbober [7]

A factor that can cause the market demand curve for day-old bread to shift rightward is a decrease in income.

<h3>What is an inferior good?</h3>

An inferior good is a good whose demand falls when income rises and increases when income falls. An inferior good is a good whose demand increases when income falls.

<h3>What is an increase in demand?</h3>

An increase in demand occurs when the demand for a good increase as a result of factors other than a change in the price of a good. When there is an increase in demand, there would be a shift to the right of the demand curve.

For more information about the increase in demand, please check: brainly.com/question/25871620

5 0
2 years ago
Craigmont uses the allowance method to account for uncollectible accounts. its year-end unadjusted trial balance shows accounts
xeze [42]

Amount of bad debts adjusting entry = 0.7% * 945,000 = 0.7/100 * 9450,000 = $6,615

The amount of the bad debts expense adjusting entry = $6,615

7 0
3 years ago
Read 2 more answers
Oriole Inc. reported total assets of $2407000 and net income of $324000 for the current year. Oriole determined that inventory w
swat32

Answer:

Total Asset $2,381,500

Net income $298,500

Explanation:

Overstated Inventory Leads to the overstatement of Total Assets value and Net Income. Ending Inventory Value is added in the total asset balance, overstatement in ending inventory causes overstatement in total assets.

The Ending Inventory is also used in the calculation of Cost of Goods sold. Overstated Inventory will cause understatement in Cost of Goods sold and overstatement in Net Income.

To rectify its effect we will deduct the overstated value of Inventory from Total Asset balance and Net Income value.

Total Asset = $2,407,000 - $25,500 = $2,381,500

Net Income = $324,000 - $25,500 = $298,500

4 0
3 years ago
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