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mina [271]
4 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]4 years ago
4 0
4.65% is the component cost of the debt for use in the wacc calculation
You might be interested in
Which of the following statements concerning the reduction of Social Security benefits is (are) correct?
tatiyna

Answer:

b) 2 only

Explanation:

The Social Security Act set up the Old Age and Survivors Insurance Trust Fund (OASI), from which retired individuals receive their payments. These benefits are subject to taxes, and can be withheld if a debt is incurred or an over-payment occurs.

5 0
4 years ago
Nicole Corporation's year-end 2017 balance sheet lists current assets of $741,000, fixed assets of $592,000, current liabilities
velikii [3]

Answer:

$106,500

Explanation:

The computation of the total stockholder equity is shown below:

Total assets = Total liabilities + stockholder equity

where,

Total assets = Current assets + fixed assets

                    = $741,000 + $592,000

                    = $1,333,000

And, the total liabilities is

=  Current liabilities + long term debt

= $533,500 + $693,000

= $1,226,500

So, the total stockholder equity is

= $1,333,000 - $1,226,500

= $106,500

7 0
3 years ago
If a company would need to increase net working capital to start a potential new project how should it be treated in the project
natali 33 [55]

Answer:

C

Explanation:

Working capital is the capital used in the daily running of a business.

Working capital = current assets - current liabilities

Working capital is a form of expenditure for the firm.

Thus it is an outflow.

Working capital should be recorded after tax. tax should be subtracted from working capital to determine the eventual outflow

An increase in working capital means more cash is being used in the business. this cash cannot be used elsewhere. this reduces the amount of cash the business can use for other activities. this is why it is an outflow

7 0
3 years ago
Which of the following is a tax on imported goods or products ?
anzhelika [568]
The answer is D. Tariff

A subsidy is a monetary gift from the government.
A quota is an amount of something.
An embargo is a ban on trade with a country.
7 0
3 years ago
Read 2 more answers
The case study method is most effective in:A. Proving out theoryB. Narrowing the gap between theory and practiceC. Simulating re
tino4ka555 [31]

Answer:

Letter B is correct. <u>Narrowing the gap between theory and practice.</u>

Explanation:

Case study is an investigative methodological approach applied to simple or applied social sciences. It is carried out through the use of different qualitative methods for the collection of data and information relevant to the foundation of the research. The qualitative method is the most appropriate in a case study, as it occurs through subjective and not substantially statistical means of in-depth analysis of relevant factors in an event, an individual, an institution, a group and others.

Case studies can be classified as:

  • exploratory,
  • descriptive, or
  • explanatory.

So it is correct to state that the purpose of the case study is to reduce the difference between theory and practice. Because the analysis of the information collected and the variables and patterns found will provide subsidies for the discussion and better understanding and reasoning between what happens between the theory and the practice analyzed in the case study.

3 0
3 years ago
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