Pacific Technologies has a $40 million bond issue outstanding with a coupon rate of 7.5% and a current yield of 7.2%. If the company's tax rate is 30%, what is the present value of the tax shield?
Q: The ending inventory be for steling supplier ltd???
A: Explanation of Ending Inventory:Ending Inventory refers to the value of unsold goods remaining at…
Q: ????!!
A: Step 1:Step 2: Step 3: Step 4:
Q: Provide Answer please
A: Explanation of Contribution Margin Ratio:The contribution margin ratio represents the percentage of…
Q: What is its net sales on these financial accounting question?
A: Step 1: Define Net SalesNet Sales represents the actual revenue a company earns after accounting for…
Q: Cash flows from operating activities - using INDIRECT method
A: Detailed explanation:Cash Flow From Operating Activities: Net Income $51,000Adjustments to…
Q: Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives…
A: The Qualified Business Income (QBI) deduction under Section 199A is generally 20% of qualified…
Q: What are the proceeds from the.note on july 15 ? Please solve this problem general accounting
A: Step 1: Define Discounted NoteA discounted note is a note where the interest is deducted in advance…
Q: Hii expert please provide correct answer general Accounting
A: Step 1: Define Product CostsThe computation of total product costs is an essential aspect of cost…
Q: Samuel Stevens' monthly pay stub indicates that his monthly gross income is $4,200. However, $900 is…
A: To calculate Samuel's disposable income, you subtract all the withholdings and contributions from…
Q: Financial Accounting
A: To calculate the accrued interest on September 30, let's break down the steps:Bond Details:Par value…
Q: Need help with this financial accounting question not use ai please don't
A: Step 1: Analysis of information givenCurrent stock price (P0) = $85.10Expected next-year dividend…
Q: Net income or net loss?
A: To find the net income (or net loss) for Vivo Enterprises, we can use the accounting equation and…
Q: How much disposable income?
A: To calculate Samuel Stevens' disposable income, we need to subtract all the deductions from his…
Q: ?!
A: Concept of Overhead CostsOverhead costs refer to all indirect expenses incurred by a company to…
Q: What is the required return on these financial accounting question? Please answer
A: The required return can be calculated using the formula: Required Return = Risk-Free Rate + Risk…
Q: What is the future value of 17 periodic payments of $9,680 each made at the end of each period and…
A: To calculate the future value of an annuity (periodic payments made at the end of each period), we…
Q: How much is tristan's amount realized?
A: The question requires the determination of the amount realized as a result of the sale of stock.…
Q: 5 PTS
A: Explanation of Book Value: Book value is the current worth of an asset as shown on the company's…
Q: The standard cost card for one unit of a certain finished product shows the following: Standard…
A: To determine the standard price per pound for direct materials, we use the given information and set…
Q: Compute the relationship of net income to net sales?
A: Explanation of Net Income: Net income represents the amount of money remaining after all expenses,…
Q: Opereting income using variable costing?
A: Step 1: Definition of Variable CostingVariable costing is a cost-accounting method where only…
Q: please solve general account questions
A: Step 1:First calculate the contribution margin per unit: Contribution margin per basket = Selling…
Q: Answer this general Accounting Question
A: To calculate the estimated net annual savings from implementing the lockbox system, we follow these…
Q: Ans
A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…
Q: Solve this financial accounting problem
A: Explanation of Net Cash Flow:Net cash flow refers to the total cash generated or used by a company…
Q: Give this question general accounting
A: Step 1: Definition of Investing ActivitiesInvesting activities include cash transactions related to…
Q: Not use ai solution please solve things question general Accounting
A: Days sales uncollected = (Accounts Receivable / Net Sales) x 365 daysDays sales uncollected = (6,500…
Q: Cool water's total liabilities are
A: Concept of AssetsAssets are resources owned by a business that have economic value and can be used…
Q: Company's project profit?
A: Step 1:a. The variable cost ratio and contribution margin ratio are calculated as follows: Variable…
Q: General accounting and question
A: The journal entry to record the sales is as follows: General JournalDebit ($)Credit ($)Cash2,453…
Q: Provide correct calculation for the price earnings ratio on these financial accounting question
A: Step 1: Define Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio is a valuation metric used…
Q: A company has sales of $389,000 and cost of goods sold of $174,000. What is the gross profit margin?…
A: The gross profit margin is calculated as: Gross Profit Margin = (Sales - Cost of Goods Sold) / Sales…
Q: Financial accounting question
A: Step 1: Define Accounting RatioAccounting ratios are comparisons of two or more financial data…
Q: Need both general account answer
A: Step 1: Compute Product Costs (Manufacturing Costs)Product costs include all costs related to…
Q: Please give me true answer this financial accounting question
A: The current yield of a bond is calculated using the formula: Current Yield = (Annual Coupon Payment…
Q: Provide correct answer this question
A: The high-low method is a cost estimation technique used to separate mixed costs into their fixed and…
Q: Variable manufacturing cost per unit
A: Part 1: Compute the variable manufacturing cost per unit by adding the direct material, direct…
Q: Calculate the Standard rate of apex industries?
A: Explanation of Standard Cost Per Unit:The standard cost per unit represents the estimated cost of…
Q: A company is analyzing its break-even point for a product with a selling price of $63 per unit. The…
A: Concept of Selling Price per UnitThe selling price per unit refers to the amount at which a company…
Q: Hii expert please given answer general accounting
A: Step 1: Define Cash Flow from Operating ActivityCash Flow from Operating Activity (CFO) represents…
Q: Tutor need provide answer
A: Explanation of Return on Investment (ROI):Return on Investment (ROI) is a financial metric used to…
Q: Compute ROI ?
A: To compute the division's turnover used to calculate ROI, Use the formula for turnover:…
Q: Tutor, solve this Accounting problem
A: Explanation of Cost of Goods Sold (COGS): Cost of Goods Sold represents the direct costs…
Q: Incurred? General accounting
A: Step 1: Definition of Standard CostStandard cost represents the estimated cost of direct materials,…
Q: Get correct solution this general accounting question
A: Step 1: Define High-Low MethodThe high-low method is a cost estimation technique that determines…
Q: need help this questions
A: Step 1: Definition of BondsBonds are financial instruments issued by companies to raise capital.…
Q: Opereting income will increase by ?? Accounting
A: Step 1: Definition of Contribution Margin and Operating IncomeContribution Margin (CM) is the amount…
Q: What would be summit enterprise taxable income for the year?
A: Explanation of Pre-tax Accounting Income: Pre-tax accounting income is the company's income…
Q: ??!!
A: Explanation of Predetermined Overhead Rate: The predetermined overhead rate is a calculated rate…
Q: Account of Financial tutor help me
A: The correct answer is:a. Differential analysis Explanation:Differential analysis is a…
Want to this question answer general Accounting
Step by step
Solved in 2 steps
- Ans?? General AccountingGeneral AccountingThe firm's tax rate is 40%. The firm plans to sell bonds having a par value of $1,000. The coupon rate would be 8%, paid in a single payment each year. The time to maturity would be 30 years. The firm believes that it can sell these bonds for $1,200, and that it will incur flotation costs of $15 per bond. What is the firm's after-tax cost of debt?
- What are its after tax earnings? AccountingSuppose a firm has $10 million in debt that it expects to hold in perpetuity. It the interest rate is 7 percent and the corporate tax rate is 35 percent, what is the value of the interest tax shield?1) Your firm wishes to issue a 20-year bond, an annual coupon of 6%, and the price has been determined to be RM880. The floatation cost of the issuance is 2% of the selling price. The tax rate is 24%. a) The net selling price is RM________. b) Annual YTM is ________% c) After tax cost of debt is ______% Answer by using formula not a Excel don't use chatgpt
- Rolex, Inc. has equity with a market value of $20 million and debt with a market value of $10million. Assume the firm has no default risk and can borrow at the risk-free interest rate. Therisk-free interest rate is 5 percent per year, and the expected return on the market portfolio is11 percent. The beta of the company's equity is 1.2. The tax rate is 20%. What is the cost ofcapital for an otherwise identical all-equity firm? handwrite pleaseRolex, Inc. has equity with a market value of $20 million and debt with a market value of $10million. Assume the firm has no default risk and can borrow at the risk-free interest rate. Therisk-free interest rate is 5 percent per year, and the expected return on the market portfolio is11 percent. The beta of the company's equity is 1.2. The tax rate is 20%. What is the cost ofcapital for an otherwise identical all-equity firm?The company you work for wants you to estimate the company’s WACC; but before you do so, you need to estimate the cost of debt and equity. You have obtained the following info. 1) the firms non-callable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000 and a market price of $1,225.00. 2) thecompany’s tax rate is 40%. 3) the risk-free rate is 4.50%, the market risk premium 5.50%, and the stocks betta is 1.20. 4) the target capital structure consists of 35% debt and the balance common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. Calculate the company’s cost of retained earnings using the CAPM approach.