Answer:
YTM is 4.94%
Explanation:
The yield to maturity is the return on the bond throughout the bond's tenure and can be computed using rate function in excel as shown below.
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond has left to pay(23 years*2)
pmt is the semiannual coupon of the bond=$1000*5.3%*6/12=26.5
pv is the curren price=$1000*105%=$1050
fv is the face value of the bond
=rate(46,26.5,-1050,1000)=2.47%
2.47% is the semiannual yield
annual yield=2.47%
*2=4.94%
Answer:
the after tax cost of debt is 3.90 %.
Explanation:
The Cost of debt is the rate required on the bond and this is calculated as follows :
PV = - $2,201
n = 21 × 2 = 42
PMT = ($2,000 × 7.38 %) ÷ 2 = $73.80
P/YR = 2
FV = $2,000
r = ?
Using a Financial Calculator, the Pre-tax Cost of debt, r is 6.4963% or 6.50 % (2 decimal places)
After tax cost of debt = Interest rate × (1 - tax rate)
= 6.50 % × (1 - 0.40)
= 3.90 %
Answer:
The right solution is "Not Deductible".
Explanation:
If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:
- Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.
- The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it.
- The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.
Answer:
Marnie will save = $ 125 from her raise .
Explanation:
raise income = $500
MPC = = 0.75
Marnie consumer 0.75 of every dollar increase . So total consumption increase = 500 * 0.75 = 375 $
Marnie will save = 500 - 375 = $ 125 from her raise .
Answer:
resource smoothing
Explanation:
According to the definition provided in the question we can say that this is regarding resource smoothing. Like mentioned in the question this term refers to a management technique that adjusts the resources so that the requirements do not surpass the resource limits that the company has specified, by delaying the noncritical activities in order to allow for the important ones first.
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