1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yuki888 [10]
3 years ago
5

Jiminy’s Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 4 years ago. The bond currently sells for 104 percent o

f its face value. The company’s tax rate is 23 percent. a. What is the company’s pretax cost of debt?
Business
1 answer:
Lesechka [4]3 years ago
3 0

Answer:

6.64%

Explanation:

The pretax cost of debt is the Yield to Maturity (YTM). Since the coupons are paid semiannually, adjust the duration and the coupon payment amount to semi-annual terms.

You can solve for the YTM using a financial calculator with the following inputs;

Maturity of the bond; N = 20*2 = 40

Face value ; FV = 1000

Semi-annual coupon payment ; PMT = (7%/2)*1000 = 35

Current price of the bond; PV = -1.04*1000 = -1040

Then compute the semiannual interest rate ; CPT I/Y =  3.318%

Therefore, pretax cost of debt; YTM = 3.318 *2 = 6.64%

You might be interested in
Robinson Manufacturing found the following information in its accounting​ records: $ 519 comma 800 of direct materials​ used, $
Damm [24]

Answer:

Cost of good manufactured=  $1507100

Explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= 72400

Direct materials = beginning inventory + purchase - ending inventory= 519800

Direct labor= 226700

Manufactured overhead= 775800

Ending work in progress= 87600

Cost of good manufactured= 72400 + 519800 + 226700 + 775800 - 87600= $1507100

5 0
3 years ago
The difference between a financial aid package and total cost of collage can be made up by ______.
Gennadij [26K]
Personal savings and student loans
6 0
2 years ago
Read 2 more answers
Cross Company reported the following results for the year ended December 31, 2018, its first year of operations: 2018 Income (pe
Jlenok [28]

Answer:

$420,000 deferred tax asset

Explanation:

Deferred-tax assets are asset that occurred when company's or organization record income tax is less than the one which is been paid to the tax authority.

Taxable income 3,200,000

Less;Income (per books before income taxes) $2,000,000

Total $1,200,000

Therefore

$1,200,000×35%

=$420,000 deferred tax asset.

Cross record should record $420,000 as a net deferred tax asset or liability for the year ended December 31, 2018

4 0
3 years ago
Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wan
Paladinen [302]

Reposition how the consumers perceived chocolate milk.

8 0
3 years ago
f the steps are small, a step-variable cost may be approximated using a ______ cost function without significant loss in accurac
posledela

If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.

<h3>Variable cost function</h3>
  • An expense for the company that varies according to how much is produced or sold is called a variable cost.
  • Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
  • It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
  • For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
  • The total variable cost curve depicts the relationship between total variable cost and the volume of output produced graphically.

To learn more about the Variable cost function refer to:

brainly.com/question/27996021

#SPJ4

7 0
2 years ago
Other questions:
  • Select the correct answer. Benjamin was tasked with the duty of negotiating with the labor union of the automobile plant where h
    8·2 answers
  • Keyshawn is a player on a professional football team. Because of this, his play every week is scrutinized by fans and media, as
    15·2 answers
  • Adjectives are used to describe personality traits. True False
    12·1 answer
  • How much is one euro in american dollars?
    15·1 answer
  • A revolving credit agreement is a formal line of credit. The firm must generally pay a fee on the unused balance of the committe
    6·1 answer
  • Explain id there is excess supply or demand of goods at the equilibrium price and why? In sentences
    15·1 answer
  • 9) An investment of $20,000 earns interest at an annual rate of 3.6% compounded continuously. a) Find the instantaneous rate of
    11·1 answer
  • All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's an
    11·1 answer
  • The key elements of creating effective advertising revolve around the two
    12·2 answers
  • A manufactured product has the following information for June. Standard Actual Direct materials (7 lbs. @ $9 per lb.) 60,000 lbs
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!