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
UNO [17]
3 years ago
12

The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The fir

m will incur a $20 flotation cost for each bond issued. If the firm's tax rate is 40%, what is the after tax-cost of the firm's debt
Business
1 answer:
stich3 [128]3 years ago
6 0

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

You might be interested in
It is rumored that the Illinois Operations Manager, Sam, has requested the quarterly budget to include an available position for
vovangra [49]

Answer:

The correct answer is letter "B": Convene a meeting and ask Sam to substantiate the need for a new team leader. Review the ethics policy and company hiring guidelines. Express your concerns about the budget.

Explanation:

First of all, the company must <em>confirm if there is really a need for a team leader in the assembly area</em>. If so, the benefits of having such a professional must be pointed out. If approved, because of the rumors of Sam hiring a friend for the position,<em> the ethics policy and company hiring guidelines must be clarified</em> in order to let Sam know that the new leader must be selected after the evaluation of a number of applicants who can could suitable for the position. Last but not least, the details of the reasonable income this new leader will receive should be explained to find out <em>what would be</em> <em>the impact on the company's budget</em>.

7 0
3 years ago
Linda visits her favorite clothing store and is disappointed to discover that the shirt she was hoping to purchase is out of sto
Julli [10]

Answer:

d. backorder

Explanation:

Based on the scenario being described within the question it can be said that the sales associate most likely offered to backorder the item for Linda. This is when a retailer places an order for a product that is no longer in stock for the time being, in order to comply with the customer, but will take a while for that order to come in and for the transaction to be completed.

8 0
3 years ago
Any attempt to verify outcomes and compare them standards can be considered a(an) _______activity, althoughmany smaller firms do
otez555 [7]
B. auditing is your word
3 0
3 years ago
Mr. Dealer bought a fleet of SUVs (sport utility vehicles) from General Motors (GM) on credit, GM agreeing not to assign the res
Temka [501]

Answer:

Yes, Dealer could collect damages from GM because basically GM breached the contract. Any time a contract is breached, the non-breaching party can sue. But the real question here is what amount could the court assign to Dealer as compensation for damages incurred. If you want to rephrase this question, it would be: What damages did Dealer suffer due to GM's breach.

If the damages are not significant, then the court will probably assign some amount for nominal damages. To be honest, the greatest expenses here are actually the legal costs of the lawsuit. Unless Dealer can prove that assigning the contract actually hurt them (which I doubt), then the court will assign a small amount. Sometimes nominal damages can be very small and mostly symbolic, e.g. $1.

3 0
3 years ago
What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pat
Mice21 [21]

Answer:

The correct answer is letter "A": Heckscher-Ohlin.

Explanation:

Named after Swedish economists Eli Heckscher (1879-1952) and Bertil Ohlin (1899-1979), the Heckscher–Ohlin theory states that countries should focus their efforts on producing and exporting those goods they are good at manufacturing and they should import the goods they struggle in making. The concept is based on both the productivity and non-productivity of nations and their best bequests.

8 0
3 years ago
Other questions:
  • What is pure competition?a. A theoretical market structure with very large numbers and identical products.b. A theoretical marke
    8·2 answers
  • A deposit of $5000 is made to a bank account paying 1.5% annual interest, compounded continuously. (a) Write the differential eq
    12·1 answer
  • Use the information in the schedules above to draw this​ economy's production function. Label it. Draw a point to show equilibri
    6·1 answer
  • Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better. As part of their budgeting proces
    7·1 answer
  • A company making tires for bikes is concerned about the exact width of its cyclocross tires. The company has a lower specificati
    14·1 answer
  • A customer of a firm enters a foreign market by setting up a manufacturing facility. It tells its suppliers that they will need
    11·1 answer
  • Cory issued a note to his creditor in exchange for an account. cory records the transaction by debiting
    5·2 answers
  • Which of the following is a major difference between Internet banks and traditional banks? The government does not regulate Inte
    7·1 answer
  • Novak Corp. has 44,000 shares of $11 par value common stock outstanding. It declares a 11% stock dividend on December 1 when the
    11·1 answer
  • A firm has an inventory period of 94.2 days, an accounts payable period of 40.4 days, and an accounts receivable turnover rate o
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!