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Gre4nikov [31]
2 years ago
9

Issuing a $1,000 par value bond with a yield to maturity of 10%. The company is in a 35 percent marginal tax bracket. What will

be the firm’s after-tax cost of debt on the bond?
Business
1 answer:
san4es73 [151]2 years ago
5 0

Answer:

6.50%

Explanation:

The after-tax cost of the debt is the yield to maturity after having deducted the tax shield which is computed using the formula below:

after-tax cost of debt=pretax cost of debt*(1-tax rate)

pretax cost of debt=yield to maturity=10%

tax rate=35%

The after-tax cost of debt=10%*(1-35%)

The after-tax cost of debt=10%*65%

The after-tax cost of debt=6.50%

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Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started
MAVERICK [17]

Answer:

$500 gain and $185 tax

Explanation:

Sale of share = No. of  NQOs × No. of shares  × Selling price per share

                      = 10 × 10 × $20

                      = $2,000

Basis = No. of  NQOs × No. of shares  × share price @$15

         = 10 × 10 × $15

         = $1,500

Gain realised = Sale of share - Basis

                      = $2,000 - $1,500

                      = $500

The tax is calculated as follows:

= Gain realised × marginal tax rate

= $500 × 37%

= $185

4 0
3 years ago
"_____ believe(s) that the new global division of three main trading blocks benefits the multinational giants as well as the cit
larisa [96]
The answer is <span>Conflict theorist
</span><span>Conflict theorist Claims that every members in society will have to experiences continous conflict toward one another because of the competition to obtain limited amount of resources.
They tend to see that the majority of members in society will always be dominated/controlled  by smaller amount of people that control the largest amount  of resources.</span>
5 0
3 years ago
What is the approach that Scrum encourages when a Team determines it will be difficult to deliver any value by the end of a Spri
garik1379 [7]

Answer:

A.  Together with the Product Owner, focus on what can be done and identify a way to deliver something valuable at the end of each Sprint

Explanation:

The approach that is to be applied for delivering the value that becomes difficult is to come together by involving the owner of the product so that we get to know by focusing it and identify the way for delivering the valuable things so that in return the customer could satisfy with the product and the chances of building a long term relation would became high

6 0
3 years ago
The members of a certain business run the risk of losing their personal property should the enterprise fail. This is because the
OleMash [197]
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5 0
3 years ago
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
Lisa [10]

Answer:

2190 ; 2560 ;

$778.2

Explanation:

Total worth of gasoline sold = 16003.50

Cost of regular = 3.30

Cost of premium = 3.45

Let :

premium Gallon sold = x

Regular gallon sold = 370 + x

Hence, mathematically;

(3.45*x) + (3.30 * (x + 370)) = 16003.50

3.45x + 3.30x + 1221 = 16003.50

6.75x = 16003.50 - 1221

6.75x = 14782.5

x = 14782.5 / 6.75

x = 2190

Premium Gallon sold = 2190 gallons

Regular gallon sold = 2190 + 370 = 2560 gallons

Profit per regular gallon sold = $0.15

Progit per premium Gallon sold = $0.18

Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2

7 0
2 years ago
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