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 answer is "provides a good basis for crafting strategy".
Explanation:
The SWOT analysis creates the foundation for something like a plan that also builds mostly on advantages of the business, tries to acquire the maximum opportunities for the industry, which defends it against threats to its well-being.
This strategic thinking uses to support an individual in identifying strengths, weaknesses, opportunities, and threats associated with both the competition of enterprises or programs.
Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
Answer:
A. $3,610,000
Explanation:
The Equivalent production = 190,000 + [70% × (200,000 - 190,000)] = 197,000 tons.
While the Cost per unit = ($3,152,000 + $591,000)/197,000 = $19;
the transferred costs = 190,000 × $19 = $3,610,000
= $3,610,000 which is the final answer.
Answer: $17.84
Explanation:
The following can be reduced.fromcthe question:
Total Assets = $848,000
Total Debt = $402,000
Total equity = Total asset - total debt
= $848,000 - 402,000
= $446,000
Outstanding Shares = 25,000
Value per shares:
= $446,000/25,000
= $17.84
Value of shares repurchased =$40,000
Number of shares repurchased:
= $40,000/17.84
= 2,242.15
= 2242 approximately
Number of shares outstanding:
= 25,000 - 2,242
= 22,758
Value of shares outstanding:
= $446,000 - 40,000
= $406,000
Price of Shares = Value of shares/number of shares
= $406,000 / 22,758
= $17.84
