<span>Tax shield is the saving in tax due to exemption of tax on interest expense = interest expense * tax rate
= $35 million * 36% = $ 12.6 million</span>
Answer:
the answer for the first question is $166667.
the answer for the second question is $210526
the answer for the third question is An inverse.
Explanation:
given information that i will invest in a $10000 scholarship that will pay forever.
the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :
Pv of perpetuity= Cf/r
where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.
Pv of Perpetuity= $10000/6%
=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.
in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :
Pv of perpetuity = $10000/4.75%
=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.
the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.
Answer and Explanation:
The Journal entry is shown below:-
On November 2022
Cash Dr, $193,200 (6,900 × $28)
To Unearned Subscription Revenue $193,200
(Being the receipt of the subscriptions is recorded)
Therefore to record the receipt of the subscriptions we simply debited the cash as it increased the assets and we credited the unearned subscription revenues as increased the liability so that the correct posting could be done
Answer:
Interest= $1750000
Explanation:
We know that:
EBIT
interest (-)
=earnings before taxes
tax (-)
=Net profit
EBIT= 6750000
Interest= ?
t= 0,40
Net profit= 3000000
interest= [netprofit/(1-t)]- EBIT
interest= (3000000/0,60)-6750000
interest= 1750000
Tax=(EBIT-interest)*0,35= 2000000
Answer:
new politacal parties
Explanation:
im taking the test right now
