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
aalyn [17]
3 years ago
5

FIN issues a $1000 par value bond that pays 7 precent annula interest and will mature in 14 years. The current market price for

the bond is $950. Flotation costs will be 14 percent of market price. The company's marginal tax rate is 25%. What will be FIN's aafter tax cost of debt? g
Business
1 answer:
Serjik [45]3 years ago
5 0

Answer:

7.05 %

Explanation:

After tax cost of debt = interest x ( 1 - tax rate)

so, the initial step is to determine the interest rate :

The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.

thus,

PV = -  [$950 - ($950 x14%)] = - $817<em>(remove floatation cost from market price)</em>

FV = $1000

PMT = $1000 x 7 % = $70.00

P/YR = 1

N = 14

i/yr = ??

Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %

therefore,

After tax cost of debt = 9.40 % x (1 - 0.25)

                                    = 7.05 %

You might be interested in
The National Park Service's efforts to attract, maintain, and enhance relationships with customers and visitors to the park is a
OverLord2011 [107]

The example that the National Park Service shows by <em>attracting, maintaining, and enhancing</em> relationships with customers and visitors is <em>D. relationship marketing.</em>

Relationship marketing offers goods and services to customers through sales and advertising that achieve long-term customer value. The relationship is built and maintained with existing customers <em>to attract new customers.</em>

Thus, the NPS's efforts enable it to build lifetime customer loyalty that ensures long-term value creation.

Learn more: brainly.com/question/14545494

6 0
3 years ago
The stage in the evolution of new products in which ideas that match company objectives are analyzed as to whether the firm has
qwelly [4]

Answer:

The question is incomplete, it misses the options. The options are the following:

a) exploration.

b) Product development.

c) Test marketing.

d) Screening.

e) Business analysis

And the correct answer is the option A: Exploration.

Explanation:

To begin with, the stage of <em>"exploration"</em> in the process of developing new products by the companies is the one in where the expertises primarily focus on the devolpment of new ideas that may match with what the company is looking for and therefore that in this part it is quite common to do storm ideas or techniques like that in where the whole group focus on coming together in few options that will pleased the superiors that will later accept or not the idea and will pass the stage to the next one or will have to start thinking about new ideas.

8 0
3 years ago
The flowtime of the last job in a single work center’s schedule is 7 days. What is the makespan of this schedule?
White raven [17]

Answer:

7 days

Explanation:

Makes-pan means the time it takes to complete a schedule. Last job took 7 days to complete and it was a single job, which means its makes-pan was 7 days as well.

8 0
3 years ago
An information system that provides relevant data to help businesspeople choose the appropriate course of action is called a(n _
castortr0y [4]
The answer is:  "Decision support system (DSS)" .
________________________________________________
8 0
3 years ago
Identify and explain two reasons why effective communication within a business is important to the management​
steposvetlana [31]

Answer:

Why effective communication within a business is important to the management?

In order to attain your objectives, it is critical to communicate well during negotiations. Within the business, communication is also crucial. Effective communication can aid in the development of a positive working connection between you and your employees, which can enhance morale and productivity.

Explanation:

It Builds and Maintains Relationships: Positive interactions with people help to form and maintain relationships. Communication will be crucial in this process; without it, it would be difficult to build and maintain fruitful partnerships. Communication is an important component of any relationship. Two people cannot be friends until they begin to communicate with one another. A supervisor-underling relationship is similar, in that the boss should be able to explain how to do his job to a new office worker.

It Facilitates Innovation: Collaboration and innovation inside the unit or organisation can be improved when employees feel free to express themselves. Employees, for example, will be able to share their ideas on how to improve a company process. Furthermore, if employees are unable to communicate their ideas owing to a lack of communication skills, the idea is unlikely to be fully implemented.

3 0
2 years ago
Other questions:
  • Which management career often requires a master’s degree?
    5·2 answers
  • A classified income statement has four major sections—operating revenues, cost of goods sold, operating expenses, and non-operat
    12·1 answer
  • In a gdss, the _______ is generally the decision maker
    7·1 answer
  • Many stores today have changed how customers shop. You can go online to buy your groceries, have a store clerk pick them out for
    9·1 answer
  • You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s e
    14·1 answer
  • On July 1, 2017, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract
    10·1 answer
  • As part of a good Section 351 transaction Andy contributes his business with a basis of $200,000 in exchange for $300,000 worth
    12·1 answer
  • Senath Company's annual report reveals net credit sales of $266,000 and average accounts receivable of $46,000. The report also
    15·1 answer
  • Attention!!! Auction is about to happen!!!!!<br><br> 1st one=50minecoins<br> 2nd=60minecoins
    10·2 answers
  • 1. Which of the following is true about finding the present value of cash flows?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!