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Fudgin [204]
2 years ago
11

Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year. If the tax rate

is 21% and the cost of debt is 6%, what is the value of the interest rate tax shield
Business
1 answer:
pochemuha2 years ago
5 0

Answer:

$4,200,000

Explanation:

Given :

Annual interest payment = $20 million

Tax rate = 21%

Cost of debt = 6%

The value of the interest rate tax shield is given by :

The tax rate * annual interest payment

Tax rate = 21% = 21/100 = 0.21

Annual interest payment = $20,000,000

The value of interest rate tax shield = (0.21 * $20,000,000) = $4,200,000

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Saturn Systems Inc., which is headquartered in the United States, has its production plant located in a less-developed country w
ivann1987 [24]

Answer:

a. unethical

Explanation:

This company's behavior is unethical. In the globalized world, it is natural for transnational firms to direct their production structure to countries where labor is cheaper, as this makes their product more competitive in the international market. However, these firms must not take advantage of regulatory failures in the labor market in these countries to increase their profit. Every firm must be concerned and ensure that the physical integrity and health of employees who work on its plants is preserved, regardless of location. Thus, in order to act ethically, this firm should implement process improvements to minimize the exposure of employees to chemical agents and to inhibit the exploitation of the labor that occurs when employees work in excess and without being paid for overtime.

3 0
3 years ago
Buying a new computer for which of these reasons is most likely a sound financial decision
Anna71 [15]

Answer:

The correct answer is "You need it to do your hw".

Explanation:

A computer today is more than just a piece of entertainment. Many professionals work from home with one of these and depending on the characteristics of the job they must evaluate which computer to buy. Thus, buying a new computer involves taking into account several factors that influence the decision financially.

Have a nice day!

3 0
3 years ago
Read 2 more answers
Brandon owes his brother $120. He has a stamp collection worth $1,250 and he has $300 in a bank account. He also has a skateboar
monitta

Answer:

Complete the problem. What are you trying to solve for?

Explanation:

4 0
1 year ago
Is also known as oral administration.
TiliK225 [7]

Answer:

D. Ingestion

Explanation:

Absorption seems like something you would get through the skin. Injection it gets put into your body by a needle. Inhalation is through the nose. Ingestion you swallow.

8 0
3 years ago
Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years.
nikdorinn [45]

Answer:

3482.12

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = net income + depreciation = 16,200 + 3300 = 35,700

($56,100 - $7500) / 3 = 16,200

Cash flow in year 0 = 56,100

cash flow in year 1 and 2 = 35700

cash flow in year 3 = 35,700 + 7500

i = 5%

NPV =

3 0
3 years ago
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