Answers
Answer:
1.Initial Acquisition cost €24,882.15
2.Amortization fee €1,688.215
3.The costs derived from daily maintenance €30,000
Explanation:
1. Calculation for the initial cost of the acquisition for IAS 16. Fixed Assets.
Using this formula
Initial Acquisition cost = (Purchase price + Additional direct expenses relative to acquisition) - (Depreciation + Amortization + taxes + impairment costs)
Let plug in the formula
Initial Acquisition cost= (25,000+ 3.00+1.150) - (122)
Initial Acquisition cost =25,004.15-122
Initial Acquisition cost = 24,882.15 Euro
Therefore the Initial Acquisition cost will be €24,882.15
2.Calculation for the amortization fees.
Using this formula
Amortization fees = total interest amount/period in the debt's life
Let plug in the formula
Interest amount= 24,882.15-5000- (250*12)
Interest amount =19,882.15-3,000
Interest amount= 16,882.15
Hence, Amortization fee will be :
Interest amount/Period in the debt's life
Where,
Interest amount=16,882.15
Period in the debt's life=10 years
Amortization fee =16,882.15/10 years
Amortization fee= €1,688.215
Therefore the Amortization fee will be €1,688.215
3.Calculation for he costs derived from daily maintenance
The costs derived from daily maintenance will be ;
Using this formula
Costs derived from daily maintenance= Specialised weekly maintenance× 12 month ×Numbers of years
Let plug in the formula
Costs derived from daily maintenance= 250*12*10
Costs derived from daily maintenance=30,000
Therefore the costs derived from daily maintenance will be €30,000
Related Questions
f Honduras is open to international trade in oranges without any restrictions, it will import
tons of oranges.
Suppose the Honduran government wants to reduce imports to exactly 100 tons of oranges to help domestic producers. A tariff of
$
per ton will achieve this.
A tariff set at this level would raise
$
in revenue for the Honduran government.
Answers
Suppose that Honduras is open to international trade in oranges without any restrictions, it will import an infinite amount of oranges. Therefore, the import of oranges can be limited through a tariff. The Honduran government wants to reduce imports to exactly 100 tons of oranges to help domestic producers.
A tariff of $720 per ton will achieve this. A tariff set at this level would raise $72,000 in revenue for the Honduran government.
Tariff: It is a tax imposed by a government on imported or exported goods. The main purpose of a tariff is to limit imports and protect domestic production and employment.
In this scenario, a tariff is imposed by the Honduran government to limit the import of oranges and help domestic producers. Therefore, if the tariff is set at $720 per ton, then it would reduce the imports of oranges to exactly 100 tons, which is the desired goal of the Honduran government.
Moreover, the tariff rate multiplied by the number of imports gives the amount of revenue raised by the Honduran government, which is $720 × 100 = $72,000. Thus, a tariff set at $720 per ton will raise $72,000 in revenue for the Honduran government.
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Sophia purchased a variable annuity contract with a purchase payment of $70,000. Surrender charges begin with 9 percent in the first year and decline by 1 percent each year. In addition, Sophia can withdraw 12 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $13,700. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay
Answers
Answer:
$477
Explanation:
Calculation to determine the surrender charge Sophia had to pay
Using this formula
Surrender charge = [Withdraw all amount - (Free withdraw all % x Account value)] x Surrender charge
Let plug in the formula
Surrender charge= [$13,700 - (0.12 x $70,000)] x 0.09
Surrender charge= ($13,700-$8,400)×0.09
Surrender charge=$5,300×0.09
Surrender charge=$477
Therefore the surrender charge Sophia had to pay is $477
James and Tami were seeking to start a bakery and bread company in their local town. They negotiated the purchase of a lot of equipment for this endeavor with Scott. These negotiations took place over the course of 4 months. James and Tami wanted to open their bakery within 6 months of these negotiations beginning. Scott became aware that he may not be able to supply the equipment as ordered in the first couple weeks of contracting with James and Tami. Which of the following is true of the materiality of breach? Multiple Choice a. Courts generally adopt strict standards to determine materiality. b. The magnitude of the breach is of relatively less importance. c. The timing of the breach is generally taken into consideration. d. There is no concern about compensating the nonbreaching party.
Answers
According to the materiality of the breach, The timing of the breach is generally taken into consideration as True about the startup. Thus, option c is correct.
The materiality of breach directs to the extent to which a violation of the agreement affects the non-breaching partaker's capacity to obtain the help of the contract. To determine that a breach is material, courts generally view the importance of the breach of the contract as an entirety.
The courts use various means to decide relevance relying on the context of the agreement and the parties' choices. The magnitude of the breach is an essential reference when defining applicability.
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Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows:
Year Projected Production (Tons) Actual Production (Tons)
1 3500 3000
2 4000 5000
3 4500 [Not]
4 5000 Yet
5 5500 [Known]
Compute the depreciation using :
a. straight line
b. sum of years digits
c. double declining balance
d. Unit of production (for the first 2 years only)
e. Modified accelerated cost recovery system
Answers
Answer:
Hence the answer is given as follows,
Explanation:
Which of the following would focus on atmospherics? A. Distributors B. Providers C. Sales prospects D. Purveyors
Answers
Answer:
c
Explanation:
its c
Sales prospects focus on atmospherics.
Hence option C is correct.
As Sales prospects is one that we can reach easily and can communicate them for our products.
What is Sales prospects?Sales prospects generally means finding potential buyers and reaching them for the product or service. Sales Prospects is very necessary for the company's growth.
What is Atmospherics?Atmospherics is a characteristics to identify the retail brand and set it apart from competitors. It is a key element which influence shoppers behavior.
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A large airline appointed an engineer to be the link between the company's research and development department and the government contractor who is sponsoring the designing and prototyping of a new fighter airplane. According to Mintzberg, the engineer appointed by the airline is in the role of a
Answers
A cross-functional team is a group of professionals who are customer-focused and have a variety of areas of expertise.
They work together to achieve a common goal through collaboration, which helps to maximise effort, investment, and time in achieving customer satisfaction and the objectives of the organisation.
Members of the team may come from several organisational divisions, including marketing, finance, safety and quality, human resources, and operations.
Prototypes are created to guarantee that early findings and solutions are used to tackle problems in an efficient manner. These prototypes are being offered to the respondents, who will assess if they truly address the issues raised by the research. If not, the prototype will continue to receive updates until the issue is resolved.
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Identify 3 current human rights violations to living in a safe and healthy way in South Africa
Answers
The right-fullness of South Africans was severely hampered by corruption, extreme poverty, high unemployment, and violent crime. In addition, the quality and accessibility of these rights were harmed by cuts to health and education services. Study of South Africa's apartheid-era human rights and medical systems.
Assault and torture committed while in police custody, incarceration without charge or trial, and restriction orders are only a few examples of human rights violations that have a terrible impact on the health of those who experience them. The South African Police are charged by the Constitution with the following duties: preventing, combating, and looking into crime; upholding public order; safeguarding the people of the Republic and their property.
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What does it mean to trust intent to avoid conflict
Answers
Answer:
If you don't trust the other party, you can't resolve conflict with them. You may even come to an agreement but without trust, you won't stick to it. ... In negotiations, parties who trust each other are more likely to cooperate and reveal information that may risk vulnerability.
Consider two projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 400, 900, 1300, and 1500 respectively. Assuming a 5% cost of capital, determine which project should be chosen if the projects are mutually exclusive.
Answers
Answer:
Project L has higher NPV than Project S, therefore Project L should be selected
Explanation:
Project S:
Year 0 : (3000)
Year 1 : 1500 * 0.952 = 1,428
Year 2 : 1200 * 0.907= 1,088.4
Year 3 : 800 * 0.864= 691.2
Year 4 : 300 * 0.823= 246.9
Total of Cash inflows after discounting: 3,454.5
Net Present Value : 454.5
Project L:
Year 0 : (3000)
Year 1 : 400 * 0.952 =380.8
Year 2 : 900 * 0.907 = 816.3
Year 3 : 1300 * 0.864 = 1,123.2
Year 4 : 1500 * 0.823 = 1,234.5
Total of Cash inflows after discounting: 3,554.8
Net Present Value : 554.8
Pizza International, Incorporated, reported the following information (in thousands):
Operating Activities
Net Income $ 100
Depreciation 33,305
Increase in receivables 170
Decrease in inventory 643
Increase in prepaid expenses 664
Decrease in accounts payable 8,720
Increase in accrued liabilities 719
Decrease in income taxes payable 2,721
Payments on notes payable 12,691
Cash paid for equipment 29,073
The following is the summarized income statement for Pizza International, Incorporated (in thousands):
Revenues $ 143,551
Cost of Sales 45,500
Gross Profit 98,051
Salary and Wages Expense 56,835
Depreciation 33,305
Office Expense 7,781
Net Income before Income Tax Expense 130
Income Tax Expense 30
Net Income $ 100
Required:
Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses.
What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss?
Answers
The combination of adding back non-cash expenses, decreases in working capital accounts, and a decrease in inventory contributed to the large positive cash flow from operations despite nearly having a net loss.
To compute cash flow from operating activities using the direct method, we need to analyze the changes in different balance sheet accounts. Let's go step by step:
Step 1: Calculate Cash Flows from Operating Activities using the Direct Method
- Start with net income: $100,000
- Add back depreciation: $33,305
- Subtract the increase in receivables: $170
- Add the decrease in inventory: -$643 (Note: decrease is subtracted)
- Subtract the increase in prepaid expenses: -$664
- Add the decrease in accounts payable: -$8,720 (Note: decrease is subtracted)
- Subtract the increase in accrued liabilities: -$719
- Add the decrease in income taxes payable: -$2,721
- Subtract payments on notes payable: -$12,691
- Subtract cash paid for equipment: -$29,073
Cash flow from operating activities using the direct method: $99,464
Step 2: Analyzing the reason for positive cash flow from operations despite a net loss
The primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss is due to non-cash expenses, such as depreciation, which is added back to net income. Depreciation is a non-cash expense that reduces net income but does not involve actual cash outflow. Therefore, adding back depreciation increases the cash flow from operating activities.
Additionally, there were decreases in working capital accounts, such as accounts payable and income taxes payable, which led to a positive impact on cash flow from operating activities. The decrease in accounts payable and income taxes payable means that Pizza International paid off its liabilities, resulting in a decrease in cash outflow.
Furthermore, there was a decrease in inventory, which also positively impacted cash flow from operating activities. Decreasing inventory reduces the amount of cash tied up in unsold goods.
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Cawley Company makes three models of tasers. Information on the three products is given below.Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 145,000 190,000 135,000 Contribution margin 151,000 314,000 65,000 Fixed expenses 114,840 225,160 92,000 Net income $36,160 $88,840 $(27,000) Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.
(a) Compute current net income for Cawley Company. Net income $ ______
(b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $290,000 common costs to the two remaining product lines based on their relative sales.)
Tingler Net Income $ _______
Shocker Net Income $ _______
Total Net Income $ _______
(c) Should Cawley eliminate the Stunner product line?
Why or why not?
Net income would _____ from $ ______to $ ________.
Answers
Answer:
Cawley Company
a) Current Net Income
Tingler Shocker Stunner Total
Sales $296,000 $504,000 $200,000 $1,000,000
Variable Costs 145,000 190,000 135,000 470,000
Contribution 151,000 314,000 65,000 530,000
Fixed Expenses 114,840 225,160 92,000 432,000
Net Income 36,160 88,840 (27,000) 98,000
b) Net Income by product line with Stunner discontinued:
Tingler Shocker Total
Sales $296,000 $504,000 $800,000
Variable Costs 145,000 190,000 335,000
Contribution 151,000 314,000 465,000
Fixed Expenses 136,300 261,700 398,000
Net Income 14,700 52,300 67,000
c1) Cawley should not eliminate the Stunner product line.
c2) Net income would decrease from $98,000 to $67,000 if the Stunner product line is eliminated.
Explanation:
a) The decision to be made is whether to eliminate a product line or not. In making such decisions, the relevant costs to be considered are avoidable costs. Allocated fixed costs are unavoidable and should not be taken into account.
b) Stunner makes a Net Income of $31,000 without the allocated common fixed expenses. This shows that the allocated common fixed expenses is actually causing Stunner to record Net Loss. And when Stunner is eliminated the company is not better off.
c) Allocation of Fixed Expenses based on Sales:
Tingler = 296/800 * $290,000 = $107,300 Plus direct cost of $29,000 = $136,300
Shocker = 504/800 * $290,000 = $182,700 Plus direct of of $79,000 = $261,700
What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?
Answers
Answer:
the equity beta of the firm is 1.134
Explanation:
The computation of the equity beta is shown below:
Equity beta is
= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]
= 0.9 × [1 + (1 - 0.35) × 0.4]
= 0 9 × 1.26
= 1.134
Hence, the equity beta of the firm is 1.134
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Your company is building a new office site in a different state. You want to show your board members the progress of construction.
What should you use to illustrate the data?
a) Photographs
b) A flowchart
c) An organizational chart
Answers
Share your ideas from the role of a key stakeholder who wants to settle the issue. Submit your ideas as a blog, a news report or other format of your choice.
Answers
Title: Bridging Divides: A Key Stakeholder's Path to Issue Resolution
Blog Post:
In today's increasingly interconnected world, conflicts and disputes have become a common occurrence. As a key stakeholder, it is essential to play a proactive role in settling such issues and fostering harmony. By promoting open dialogue, understanding, and collaboration, we can pave the way for sustainable resolutions that benefit all parties involved.
Firstly, it is crucial to establish a platform for communication and negotiation. This platform should encourage all stakeholders to express their concerns and perspectives openly, creating an environment of trust and respect. By actively listening to each other's viewpoints, we can gain valuable insights into the underlying causes of the issue and identify potential areas of compromise.
Secondly, building bridges requires empathy and a willingness to see beyond our own interests. By considering the needs and aspirations of all stakeholders, we can work towards finding mutually beneficial solutions. This involves exploring creative alternatives and seeking common ground that addresses the core concerns of each party.
Thirdly, fostering collaboration among stakeholders is key to overcoming barriers and finding lasting resolutions. By encouraging joint problem-solving efforts and facilitating partnerships, we can tap into the collective wisdom and resources of diverse groups. Collaboration also enhances ownership of the solutions, increasing the likelihood of successful implementation.
Lastly, it is important to promote ongoing dialogue and learning. Conflict resolution is a dynamic process, and it is essential to continuously assess the effectiveness of implemented solutions. By creating mechanisms for feedback and evaluation, we can refine our approaches and adapt to changing circumstances, ensuring the sustainability of the settlements achieved.
Resolving issues requires a long-term commitment from all stakeholders involved. As a key participant, we have a responsibility to foster an environment of understanding, collaboration, and empathy. By embracing these principles, we can bridge divides and forge a path towards harmonious coexistence and mutual prosperity.
News Report:
Headline: Stakeholder Engagement Drives Successful Resolution of Long-standing Conflict
Date: May 18, 2023
In an inspiring display of diplomacy and cooperation, key stakeholders have come together to settle a long-standing dispute that has plagued our community for years. Their unwavering commitment to dialogue and collaboration has paved the way for a sustainable resolution that promises to benefit all parties involved.
The conflict, which had deep-rooted historical and cultural undertones, threatened to undermine social cohesion and impede progress. However, through the proactive efforts of key stakeholders, a platform for open communication and negotiation was established, providing a safe space for all voices to be heard.
Emphasizing the importance of empathy and understanding, stakeholders actively listened to one another's concerns and perspectives. This empathetic approach enabled them to uncover the underlying causes of the issue and identify potential areas of compromise. By seeking common ground and exploring creative alternatives, they forged a path towards mutually beneficial solutions.
Central to this successful resolution was the fostering of collaboration among stakeholders. Recognizing the power of collective wisdom and resources, they engaged in joint problem-solving efforts and formed partnerships. This collaborative approach not only facilitated the identification of innovative solutions but also fostered a sense of ownership and commitment among all parties.
However, the settlement process did not end with the signing of agreements. The stakeholders have shown a steadfast commitment to ongoing dialogue and learning. They have implemented mechanisms for feedback and evaluation, allowing for continuous refinement and adaptation of the agreed-upon solutions.
As the community celebrates this milestone, it serves as a shining example of what can be achieved when key stakeholders embrace the principles of understanding, collaboration, and empathy. By bridging divides and forging a path towards harmonious coexistence, they have laid the foundation for a brighter, more prosperous future.
In conclusion, resolving complex issues requires the collective effort of key stakeholders who are willing to transcend differences and work towards a common goal. It is through their commitment to open
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Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $226,445, net annual cash flows $40,500, and present value factor of cash inflows for 10 years is 5.89 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.
Answers
Answer:
Hsung Company
a. The net present value is:
= $12,100.
b. Since the investment could yield a net present value of $12,100, the investment should be made.
Explanation:
a) Data and Calculations:
Cash cost of proposed capital investment = $226,445
Net annual cash inflows = $40,500
Present value factor of cash inflows for 10 years = 5.89 (rounded)
Present value of net annual cash inflows = $238,545 ($40,500 * 5.89)
The net present value of the proposed capital project = Present value of net annual cash inflows minus the initial investment cost
= $12,100 ($238,545 - $226,445)
Answer:
12100
Explanation:
40500*5.89=238545
238545-226445=12100
12100
The comparative balance sheets for Riverbed Company show these changes in noncash current asset accounts: accounts receivable decreased $81,100, prepaid expenses increased $24,700, and inventories increased $43,400.
Answers
Decreases in accounts receivables are added back because these represent collections from customers. Increases, however, are deducted because no actual cash was received when sales were recorded.
A balance sheet contains what?An organization's assets, liabilities, and owner equity are listed on a balance sheet as of any given date. A balance sheet is usually created at the conclusion of predetermined periods (e.g., every quarter; annually). Two columns make up a balance sheet. The company's assets are listed in the left-hand column.
What is a balance sheet's primary function?A balance sheet provides you with a momentary glimpse of your company's financial situation. A balance sheet can assist business owners in assessing the financial health of their organization along with an income statement and a cash flow statement.
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What is one step in identifying the main idea of a text?
Group of answer choices
Determine what the text says about the topic
Go to the glossary and find words related to the topic
Look for the lesson the author wants the reader to learn
Use context clues to understand the meaning of new words
Answers
Answer:
i believe the first option " determine what the text says about the topic" might be the correct answer
Answer: the answer is c
Explanation:
I am way too late but i took the same test
Kate was turned down for a job because of a bad credit report. The creditor is required to give her the name of the credit bureau that supplied the report, according to
the:
Fair Credit Reporting Act.
Fair Credit Billing Act.
Truth in Lending Law.
Equal Credit Opportunity Act
Answers
The creditor is required to give Kate the name of the credit bureau that supplied the report under the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that regulates the collection, use, and disclosure of consumer credit information. Under the FCRA, creditors are required to provide consumers with a copy of their credit report upon request. They are also required to provide consumers with the name and address of each credit bureau that has provided them with a report within the past two years.
The other laws you mentioned are also important, but they do not specifically address the issue of providing consumers with the name of the credit bureau that supplied their report. The Fair Credit Billing Act (FCBA) regulates the billing practices of creditors and credit card companies. The Truth in Lending Law (TILA) requires lenders to disclose certain information to borrowers, such as the annual percentage rate (APR) and the total amount of interest that will be charged on a loan. The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against borrowers on the basis of race, color, religion, national origin, sex, marital status, age, or because they receive income from a public assistance program.
The 30-years, 5.5 percent bonds issued by Modern Kitchens pay interest semiannually, mature in four years, and have a $1000 face value. Currently, the bonds sell for $1 020.66. What is the yield to maturity?
Answers
4.92% is the yield to maturity. Thus, option A is correct.
What are bonds?Debt protection is called a bond. Bonds are issued by creditors to attract investors with capital ready to extend a loan to them during a specified specific time period
The given information will be:
face value of bond = $1000
The bond's selling price = $1 020.66
The formula for Yield to maturity will be:
Yield to maturity= (annual coupon payment+(face value-market value)/years to maturity)/(face value+ market value)/2)
= (55+(1000-1020.66)/4) / (2020.66/2)
= (49.835/1010.33)
= 4.92%.
Therefore, option A is the correct option.
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The question is incomplete, the complete question will be:
Multiple Choice
4.92%
2.68%
5.39%
4.41%
2.46%
Substantive law can best be described as:
Answers
substantive law is a set of known and defined laws which govern how members of the society behave. it also have a relationship with procedural law which is a set of procedures for making and enforcing substantive law.
Substantive law defines rights and responsibilities in civil law, and crimes and punishments in criminal law. It may be codified in statutes or exist through precedent in common law.
i hope this helps..
Josh buys an $8000 10-year bond that has a coupon rate of 4.5 %. If he keeps the bond to maturity, how much interest will he collect?
Answers
Josh will collect $3600 in interest if he keeps the $8000 10-year bond with a 4.5% coupon rate to maturity.
To calculate the interest that Josh will collect from the 10-year bond with an $8000 face value and a coupon rate of 4.5%, we need to consider the annual interest payment and the total number of interest payments over the bond's lifespan.
The annual interest payment can be calculated by multiplying the face value of the bond ($8000) by the coupon rate (4.5%). This gives us an annual interest payment of $360 (8000 * 0.045).
Since the bond has a 10-year maturity, there will be a total of 10 interest payments over its lifespan. Therefore, the total interest Josh will collect can be calculated by multiplying the annual interest payment ($360) by the number of interest payments (10).
Total interest = Annual interest payment * Number of interest payments
Total interest = $360 * 10
Total interest = $3600
Therefore, if Josh keeps the bond to maturity, he will collect a total of $3600 in interest over the 10-year period.
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Which two of these are essential for completing an initial mortgage loan application?
Home purchase price
Proof of income
Current debts and credit history
Name of insurance agent
$2,500 in savings
Answers
Answer:
2 and 3
Explanation:
Proof of income and Current debts and credit history
Calculating Cost of Debt For the firm in the previous problem, suppose the book value of the debt issue is $35 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $80 million and the bonds sell for 61 percent of par. What is the company’s total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt now?
Answers
The best estimate of the aftertax cost of debt for the firm is 3.47% in the given case.
To calculate the total book value of debt, we sum the book values of both debt issues:
Total book value of debt = Book value of debt issue 1 + Book value of debt issue 2
Total book value of debt = $35 million + $80 million
Total book value of debt = $115 million
To calculate the market value of the zero coupon bond, we need to find 61% of the face value:
Market value of zero coupon bond = 0.61 x Face value of zero coupon bond
Market value of zero coupon bond = 0.61 x $80 million
Market value of zero coupon bond = $48.8 million
The total market value of debt is the sum of the market values of both debt issues:
Total market value of debt = Market value of debt issue 1 + Market value of debt issue 2
Total market value of debt = $35 million + $48.8 million
Total market value of debt = $83.8 million
To find the aftertax cost of debt, we need to first calculate the yield to maturity on the zero coupon bond. We know that the bond has 12 years left to maturity and sells for 61% of par, so we can use the following formula to find the yield to maturity:
61% of face value = $48.8 million
Par value = $100 million
Years to maturity = 12
Yield to maturity = ?
Solving for the yield to maturity using a financial calculator or spreadsheet, we get:
Yield to maturity = 4.83%
Next, we need to find the aftertax cost of debt for both debt issues separately and then weight them by their respective market values. We are given that the company's tax rate is 40%.
For the first debt issue, we are given that the coupon rate is 8% and that the bonds are currently selling at par, so the beforetax cost of debt is 8%. The aftertax cost of debt is:
Aftertax cost of debt issue 1 = Beforetax cost of debt issue 1 x (1 - Tax rate)
Aftertax cost of debt issue 1 = 8% x (1 - 40%)
Aftertax cost of debt issue 1 = 4.8%
For the zero coupon bond, we already calculated the yield to maturity, which is the beforetax cost of debt. The aftertax cost of debt is:
Aftertax cost of debt issue 2 = Beforetax cost of debt issue 2 x (1 - Tax rate)
Aftertax cost of debt issue 2 = 4.83% x (1 - 40%)
Aftertax cost of debt issue 2 = 2.90%
Finally, we can weight the aftertax costs of debt by their respective market values to get the overall aftertax cost of debt:
Overall aftertax cost of debt = (Market value of debt issue 1 / Total market value of debt) x Aftertax cost of debt issue 1 + (Market value of debt issue 2 / Total market value of debt) x Aftertax cost of debt issue 2
Plugging in the numbers, we get:
Overall aftertax cost of debt = ($35 million / $83.8 million) x 4.8% + ($48.8 million / $83.8 million) x 2.90%
Overall aftertax cost of debt = 3.47%
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An individual has total assets of 120,000 and total liabilities of 80,000. what is his net worth?
Answers
Answer:
40,000
Explanation:
Net worth is the value of a person or a firm's assets minus the liabilities. It is the net value of all the assets owned by an individual or organization. Calculation of net worth is by deducting liabilities from assets,
i.e., Asset - liabilities.
For this individual, net worth will be
=120,000 - 80,000
=40,000
Slove 56 is 5 1/2% of what
Answers
For the mentioned problem, 56 is 5¹/₂ percent of 1018.08.
What is percent?In mathematics, percentage is said to be a number or ratio expressed as a fraction of 100. It is commonly represented by the percent sign '%', but abbreviations such as 'pct.', 'pct', and 'pc' may also be used. Percentages are dimensionless numbers as they have no units of measure.
Percent may be calculated by dividing the value by the total and multiplying the result by 100. The equation used to calculate the percentage is (value/total) * 100%.
For the given question:
5¹/₂% = 11/2%
11/2% of x = 56
(11/200) × x = 56
x = 56 × (200/11)
x = 1018.08
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Where should DoD employees look for guidance on safeguarding classified information?
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Answer: E.O. 13526 ; DoDM 5200.01
Explanation:
The Department of Defense(DOD) is a federal agency that is responsible for the coordination and the supervision of everything that is related to national security in the United States.
The Department of Defense employees should look at E.O. 13526 and the DoDM 5200.01 for guidance on safeguarding classified information.
DoD employees should look for guidance on safeguarding classified information primarily within the Department of Defense (DoD) policies and regulations.
How is this so?These policies and regulations provide comprehensive guidelines on the handling, storage, transmission, and protection of classified information.
Specifically, employees can refer to documents such as the DoD Manual 5200.01, "DoD Information Security Program," and DoD Directive 5200.01, "DoD Information Security Program and Protection of Sensitive Compartmented Information."
Also, each branch of the military and specific agencies within the DoD may have their own supplemental guidance and regulations that employees should consult for specific requirements and procedures.
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The first interview in the hiring process is called a
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Great talkers are never great doers essay
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Great talkers are never great doers means people who make loud and loud promises rarely keep their promises.
Meaning -There are many such talkative people who use lofty terms to show off their worth and blow their trumpets just to hide their inner weaknesses and vices. They are like empty ships that often ring. However, their vanity and selfishness often put them in a very low position when in times of crisis they display white feathers that are at odds with their lofty rhetoric.
On the hand, someone who speaks little, believes in deeds, and knows his or her limits proves to be sincere enough to keep his promises.
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Uninode Inc. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 11% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 8% add-on interest to be repaid in 12 equal monthly installments.
Based on a 360-day year, what will be the monthly payment for each loan for November?
Answers
The monthly payment for each loan in November would be $4,125 if the year had 360 days.
Simple interest payment will be $450,000*11/100
= $49,500
It will be for the entire year and November
= $49,500 × 30/360
= $4,125.
As a result, using the basic interest option, $4125 will be paid as interest in November.
Add-on interest divides the overall loan into equal payments by adding the total interest to be paid to the upfront cost.
I.e., a $450,000 loan with 8% more interest, or $36,000 per year.
Total principal and interest to be paid
= $450,000 + 36,000
= 486,000 in the year
Now divide into 12 equal installments
= $ 486,000/12
= $ 40,500
$40,500 is to be paid in November for the add-on option.
Before accepting the loan, the corporation had to consider a number of other considerations, such as the loan's tenure because an add-on option would be detrimental to long-term loans.
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According to the video, which tasks do Urban and Regional Planners perform? Check all that apply.
developing recommendations to improve medical care
promoting the best use of land and resources
developing plans for growth and renewal
promoting campaigns for political elections
reviewing applications for government assistance
Nvm its b and c
Answers
Answer:
Wat
Explanation:
Answer:
b & c (did the assignment on edg) ;)
Explanation: