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Aliun [14]
3 years ago
12

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9 percent. The interest is

paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 34 percent?A. $58,500B. $60,750C. $60,100D. $62,250E. $61,200
Business
1 answer:
irakobra [83]3 years ago
8 0

Answer:

E. $61,200

Explanation:

total interest expense = 2,000 bonds x $1,000 per bond x 9% = $180,000

the interest shield is the amount of taxes saved by paying interest expense

interest shield = total interest expense x tax rate = $180,000 x 34% = $61,200

this means that the company will be able to reduce its income taxes by $61,200 because it paid interests on their bonds

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Law Incorporation [45]

Answer:

message flows are modeled with solid arrows

Explanation:

In Business Process Model and Notation (BPMN), message flows are used in the collaboration diagram to show how two or more distinct processes within the model, communicate and collaborate with each other without any form of central control.  

Dash lines together with an empty circle are used for the message flow to show where the message comes from and an empty arrow head is used to show where the message would be terminating in the model.  

3 0
3 years ago
After a suspected identity fraud case has been resolved, you should:
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3 years ago
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Assuming that everything else is equal, select the bond that most likely pays a higher Interest rate:
never [62]

Answer:

1. a. A bond issued by a government that is engaged in a civil war.

2. 1. The Standard & Poor's 500 is an example of a stock index.

Explanation:

A key part of the interest rate on a bond is the risk attached to the issuer of the bond. A government engaged in civil war is definitely riskier than the stable government of Japan because there is a chance that they might not even pay if they are defeated and a new government comes in. Such a government will therefore issue at a higher rate to cater for this risk.

The Standard and Poor's 500 is indeed an example of a stock index and it is used to gauge the performance of 500 large companies on various exchanges in the U.S. A corporation can either increase, decrease or maintain stock price by issuing stock so option 2 is wrong. Option 3 is wrong as well because trading stock on an organized exchange does not bring in any revenue for the issuing firm.

3 0
3 years ago
After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking
MakcuM [25]

Answer:

257 boxes

Explanation:

The computation is given below;

Daily Demand would be

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= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5

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= 257 boxes

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4 years ago
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C) Our Proven Supplement

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4 years ago
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