Answer:
the amount of the annual interest tax shield = $7437.5
Explanation:
First we need to ckeck the vaelus given on the problem.
$340,000 bond issue outstanding
rate of 6.25%
sell at 101.2% of face value
tax rate is 35 percent
pay interest semiannually
so the amount of the annual interest tax shield will be given by:
Coupon amount paid in a year = $340000 x 6.25 / 100 = $21250
amount of the annual interest tax shield = $21250 x 35 / 100 = $7437.5
therefore we have that the amount of the annual interest tax shield is $7437.5
The Financial career in which Egan would be most successful is:
<span>A) </span>Business Finance Management
Explanation: The Business Finance Management requires a lot of skill in planning and budgeting money. This career requires patience knowledge and understanding in tracking financial transactions. And all of these skills and knowledge are possessed by Egan that is why he can be most successful in Business Finance Management career.
Answer:
2017 Days' Sales Uncollected 49.37 days
2016 Days' Sales Uncollected 49.10 days
Explanation:
Computation for days' sales uncollected
Using this formula
Days' Sales Uncollected=Average receivables / Credit sales x 365 days
Let plug in the formula
2017 Days' Sales Uncollected= $76,450 / $565,219 x 365
2017 Days' Sales Uncollected= 49.37 days
[($89,900+$63,000)/2=$76,450]
2016 Days' Sales Uncollected= $60,000 / $446,029 x 365 days
2016 Days' Sales Uncollected= 49.10 days
[($63,000+$57,000)/2=$60,000]
Therefore 2017 Days' Sales Uncollected will be 49.37 days and 2016 Days' Sales Uncollected will be 49.10 days
Answer:
Product X Product Y
Contribution Margin per $10 $12
Production Hour
Explanation:
The hours used in the product X and product Y is computed as:
Product X Product Y
Units produce in per hour 2 3
Hours used per units 1/2 = 0.5 1/3 = 0.333
The contribution margin per production hours is calculated as, divide the contribution margin by hours as shown below:
Product X Product Y
Contribution margin $5 $4
Hours used 0.5 0.333
Contribution margin per 5/0.5 = 10 4/0.333 = 12
Production Hour
