Wind Power Systems has semi-annual bonds outstanding with a 5 percent coupon that will mature in 20 years. The face amount of each bond is $1,000. These bonds are currently selling for 114 percent of face value. What is the company's pre-tax cost of debt?

Answers

Answer 1

Answer:

the pre tax cost of debt is 3.98%

Explanation:

The computation of the pre tax cost of debt is shown below;

Pre tax cost of debt is

= (Annual interest + (par value - market price) ÷ (number of years) ÷ (par value + market price) ÷ 2

= (0.05) + ($1,000 - $1,140) ÷ (20) ÷ ($1,000 + $1,140) ÷ 2

= 3.98%

Hence, the pre tax cost of debt is 3.98%

We simply applied the above formula so that the correct value could come

And, the same is to be considered


Related Questions

Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at A. its market value. B. its book value. C. a value assigned by the board of directors. D. the par value of the stock given.

Answers

Answer:

A) Its market value

Explanation:

From the question, we are informed about Yummy Treats Bakery which issues common stock in exchange for a building. In this case Yummy Treats Bakery should record the building at its market value. Market value can as well be regarded as "open market valuation" it can be explained as the price an asset would bring as value in a market or in a auction setting i.e a compititive setting. It is the worth of an asset or company in financial market which is base on the participants in the market.

The value of the consumer price index (CPI) is best described as the:__________

Answers

Answer:

current year prices to base year prices, holding the market basket content constant.

Explanation:

The CPI as a form of measurement, gives an examination of the weighted average of what is the cost or prices of a basket of consumer goods and services, transport, food, and medical services. We can calculate this when we take the changes in price of every singular item in the basket of goods and finding the average.

It's value can best be described as current year prices to base year prices, while holding the market basket fixed.

Last year Ellen received $75,000 in compensation from her employer who also agreed to pay her Social Security taxes of $4,650 and Medicare taxes of $1,088 without deducting them from her wages. Based solely on these facts, what amount must Ellen include in her income

Answers

Answer:

Ellen's AGI = $80,738

Explanation:

Since Ellen's employer paid for her share of FICA taxes, we could consider them as taxable fringe benefits. As such, they must be included in Ellen's AGI for the current in order to determine her total taxable income = salary + social security taxes + medicare taxes = $75,000 + $4,650 + $1,088 = $80,738

The amount Ellen must include in her income is $80,738.

Data and Calculations:

Annual employment compensation = $75,000

Social security taxes paid by employer = $4,650

Medicare taxes paid by employer = $1,088

Thus, the amount Ellen must include in her income is $80,738 ($75,000 + $4,650 + $1,088).

Learn more about the amount to include in taxable income here: https://brainly.com/question/25304207

If Compu-Globo established a merit pay program, which of the following would be true?
a) All of these choices are correct.b) It guarantees that employees are only rewarded on the basis of ability and motivation.c) It would be inexpensive to implement and maintain.d) It could become expensive quickly.e) Teamwork would likely increase among Compu-Globo employees.

Answers

Answer:

If Compu-Globo established a merit pay program, the following would be true:

b) It guarantees that employees are only rewarded on the basis of ability and motivation.

Explanation:

With a merit pay program, each worker is rewarded based on their performance.  One big advantage of the merit-based pay is that each individual is paid for his or her worth.  However, its major pitfalls are that it is very subjective, and it increases unhealthy competition among individuals.  This increased competitiveness may not be beneficial to the organization's objectives.

A Program Manager and a Vice President discussing the costs associated with the completion of a recent project, so that future cost estimates can be made, is an example of which of the following?

a. Financial accounting
b. Production accounting
c. Managerial accounting
d. Departmental accounting

Answers

Answer:

c. Managerial accounting

Explanation:

MANAGERIAL ACCOUNTING can be seen as the in which a project manager who is in charge of a project discuss the amount they have spent with regards to the project they just completed in order to estimate the project cost of another project they may have in the future

describe the features of an oligopolistic market?​

Answers

Answer:

see below

Explanation:

An Oligopoly market structure is one that has few firms dominating an industry with many buyers. The few firms may be selling an identity or differentiated product.

The features of an oligopoly market include

1. Heavy Advertising

Each of the firms will advertise to win customers.  Because the firms offer similar or differentiated products, there is heavy advertising to try to get a bigger market share.

2. Interdependence

There are few firms competing for many buyers. What one of the firms does elicits reactions from the others.  If one of the firms reduces its prices, there are higher chances that the others will also follow suit. To avoid unhealthy competition, these firms engage in collaborations.

3. Barriers to Entry

It requires heavy capital expenditure to participate in an oligopoly market. The amount of capital required acts as a barrier to entry.  The domination by a few firms and intense advertisement scares away new entrants.

4. Price-setters

Each firm is able to set its price. All the firms do not sell uniform products; hence they are able to set their pri

Anti-poverty programs Group of answer choices encourage saving among recipient groups. impose a very low marginal tax rate on income. are only made available to those with no other source of income. may discourage the poor from escaping poverty on their own.

Answers

Answer: may discourage the poor from escaping poverty on their own.

Explanation:

Most people do not want to remain in poverty and this on its own will act as an incentive as it will push a poor person to find ways of escaping poverty.

Anti-poverty programs remove that incentive because the poor will be getting an income because they are poor.

There is a chance therefore, that this will not only rob them of the incentive to get out of poverty, but it will also give them an incentive to stay poor because if they cease to be poor, the program will no longer benefit them.

Which scenario below is an example of complementary products, based on their cross-price elasticity?A. Bananas and lettuce, with an elasticity of 0. B. Shampoo and conditioner, with an elasticity of 3.5. C. Coffee and tea, with an elasticity of 2.25. D. Green salsa and red salsa, with an elasticity of 2.75.

Answers

Answer: B. Shampoo and conditioner, with an elasticity of -3.5.

Explanation:

Complimentary products are those which see their quantity demanded move together because the goods usually compliment each other like tea and sugar.

Their Cross-price elasticity shows this by being a negative figure. This is because when the price of one commodity goes up, the quantity demanded of the other goes down because higher prices lead to lower quantity demanded.

The actual question showed that Conditioner and Shampoo had a cross-price elasticity of -3.5 so this is the correct answer.

Calculate price of a 25-year annuity making a $60 annual payment, discounted at 5%.

Answers

Answer:

the price of a 25-year annuity  is $845.64

Explanation:

The computation of the price is as follows:

The price of a 25-year annuity  is

= Annual payment × ((1 - (1 + discounted rate)^(number of years)) ÷ discounted rate)

 = $60 × ((1 - (1 + 5%)^(-25)) ÷ 5%)

= $845.64

hence, the price of a 25-year annuity  is $845.64

Therefore it could be determined by applying the above formula so that the price could come

Would you expect the amount of overhead applied for a period to equal the actual overhead costs of the period? Why or why not?

Answers

Answer:

No.

Explained below

Explanation:

No, I wouldn't expect the amount of overhead applied for a period to equal the actual overhead costs of the period. This is because, due to the fact that the predetermined overhead rate is purely an estimate of what costs are projected to be established before the period begins, it means that there will always be a difference between the predetermined costs and the actual overhead costs .

Pronghorn invested $270000 she received from her grandmother today in a fund that is expected to earn 6% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually?

Answers

Answer:

FV= $362,857.42

Explanation:

Giving the following information:

Initial investment (PV)= $270,000

Number of periods (n)= 5*2 = 10 semesters

Interest rate (i)= 0.06/2 = 0.03

To calculate the future value (FV), we need to use the following formula:

FV= PV*(1+i)^n

FV= 270,000*(1.03^10)

FV= $362,857.42

Kwame is a single taxpayer. He has $12,000 in deductible mortgage Interest, 55,700 in deductibio property tax, and his AGI Is $62,135. He incurred the following medical expenses:
$5,550 out-of-pocket hospital stay
$353 for prescriptions
$500 doctor visits
$200 prescription eye glasses
What amount can be deducted for deductible medical and dental expenses?
a. $0
b. $1,743
c. $1,943
d. $6,603

Answers

Answer: $1943

Explanation:

It should be noted that medical expenses would only be deducted once it's more than 7.5% of AGI. First, we have to calculate the total medical expenses which would be:

out of pocket hospital stay = $5550

Add: prescriptions = $353

Add: doctor visits = $500

Add: prescriptions eyeglasses = $200

Total = $6603

Since AGI is given as $62135, we then calculate 7.5% of the AGI which would be:

= 7.5% × 62135

= $4660.125

Therefore, the amount can be deducted for deductible medical and dental expenses would be:

= $6603 - $4660.125

= $1942.875

= $1943

July 30.Received the balance due from Art Co. for the invoice dated July 19, net of discount.

Here is Juy 19th's record: Sold merchandise to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

Answers

Answer:

Date        General Journal           Debit      Credit

July 30  Cash                              $1,176

                (1200*98%)

                Sales discount              $24

                       Account receivable-Art Co   $1200

Trade restrictions Group of answer choices Reduce the gains from trade for the country as a whole. Increase the gains from trade for poor countries. Reduce the number of hours employees must work. Increase the standard of living for the country as a whole.

Answers

Answer:

reduce the gains from trade for the country as a whole.

Explanation:

The theories of the international trade recommended that the trade restrictions do not permit the country to distribute its resources in the case when there is a competitive advantge. Due to this, the consumer lost because of the higher prices and also the producer would continue to exhibit the productivity that would be poor. In addition to this, there is a loss to loss situation.

Therefore as per the given situation, the first option is correct

Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for the year, the break-even point in unit sales was: Multiple Choice

Answers

Answer:

the break even point in unit sales is 12,000 units

Explanation:

The computation of the break even point in sales is shown below;

But before that following calculations need to be done

Sales revenue $300000  

Less: Fixed expenses $96,000

Less: Net operating income $24,000

Variable expenses $180,000

Units sold = $300,000 ÷ $20 = 15,000 units

Variable cost per unit

= $180,000 ÷ 15,000 units

= $12

Now the break even point in unit sales is

= Fixed cost ÷ contribution margin per unit

= $96,000 ÷ ($20 - $12)

= $96,000 ÷ 8

= 12,000 units

hence, the break even point in unit sales is 12,000 units

Drag each credit plan to its description.

revolving credit

installment account

charge card

Borrowers have a fixed credit line that is replenished as the outstanding balance is paid off.



Borrowers have to make regular payments under fixed terms.



Consumers can shop using credit at specific locations.





Answers

Answer: (1)revolving credit, (2)installment account,& (3)charge card

Explanation:

(1)Borrowers have a fixed credit line that is replenished as the outstanding balance is paid off.

(2)Borrowers have to make regular payments under fixed terms.

(3)Consumers can shop using credit at specific locations.

Answer:

Borrowers have a fixed credit line that is replenished as the outstanding balance is paid off. -Revolting Credit

Consumers can shop using credit at specific locations. -Charge Card

Borrowers have to make regular payments under fixed terms. -Installment Account

I took the test on plato and got it right

WaterwayCompany has the following equivalent units of production for July: materials 15460 and conversion 11540. Production cost data are: Materials Conversion Work in process, July 1 $ 7300 $ 3700 Costs added in July 70000 54000 The unit production costs for July are: ________

a. $4.53
b. $4.68
c. $5.00
c. $5.00
d. $5.00
e. $4.68
f. $4.53
g. $5.00

Answers

Answer:

c. $5.00  & $5.00

Explanation:

                                                Materials     Conversion

Work in process July 1              $7300          $3700

Cost added in July                    $70000       $54000

Total Cost (A)                             $77,300       $57,700

Equivalent unit for July (B)         15460           11540

Production Cost (A/B)                  $5                $5

Larry comes to your office to file his 2020 tax return and tells you that he never received an Economic Impact Payment (EIP) during 2020. It appears that he should have qualified. You assist Larry in checking the Get My Payment tool at www.irs.gov, where it says that a payment was deposited to a bank account that Larry states is not his. Larry will need to:

Answers

Incomplete question. The options:

a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

b. File Form 14039, Identity Theft Affidavit, with the IRS.

c. Contact the Farm Housing Administration.

d. Contact the bank that received the deposit and ask them to redirect the funds to him.

Answer:

a. File his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

Explanation:

True. According to the information found on the IRS website concerning those who were eligible but didn't receive the Economic Impact Payment (EIP) during 2020, they are to fill the 2020 Form 1040 alongside submitting their tax returns for the year 2020.

Hence, Larry simply needs to file his 2020 tax return, including the EIP on Form 1040, line 30, and wait for the IRS to fix the mistake.

Distinguish between formal and informal methods of researching data for a business message.

Answers

Answer:

The differentiation between some of the instances is characterized below.

Explanation:

The formal method addresses the development relating to particular components that could be quantified as well as reviewed besides consistency or accuracy, while the informal one describes stats information on either the psychologist's gut instinct. Formal research has already been used much less throughout the past, while informal research has been widely used throughout the old days.

Marigold Corp. has fixed costs of $2200000 and variable costs are 20% of sales. What are the required sales if Marigold desires net income of $200000

Answers

Answer:

$10,000

Explanation:

The required sales is calculated as;

= Fixed costs + Desired profit / Contribution margin ratio

Given that;

Fixed costs = $2,200,000

Desired profit = $200,000

Variable cost = 20% of sales

Sales = X

Contribution margin ratio =

X = $2,200,000 + $200,000 /

The annual report for a hospital shows that external environment factors are affecting the amount of new staff hired. What is a likely factor contributing to this outcome?

a. The recent implementation of becoming a not-for-profit institution
b. The implementation of a hospital electronic medical record system
c. A national recession that has been occurring for 3 years
d. The closure of a hospital-based school of nursing due to lack of funding

Answers

Answer:

c. A national recession that has been occurring for 3 years

Explanation:

In the case when the annual report of the hospital represent that the factors of the external environment impacting the new staff i.e. hired amount so the result that contribute is that there is a national recession that could be arise for the three years

hence, the same is to be considered

Therefore the correct option is c.  

Calculate the current yield of this bond: (Round your answer to the nearest tenth percent.)
Bond Current Yield Vol Close Net Change
Action 11 22 10 102 1.25
Current yield __________%

Answers

Answer:

11%

Explanation:

Note: Kindly observe the organized question is attached as picture below

FV = 1000

Coupon amount = 1000*11.22% = 112.2

Close price = 102%

Price of bond in amount = Face value * quoted%

Price of bond in amount = 1000 * 102%

Price of bond in amount = 1020

Current yield formula = Coupon amount/price of bond

Current yield formula = 112.2/1020

Current yield formula = 0.11

Current yield formula = 11%

An attempt to gain control of the firm by buying sufficient shares of the target firm in the marketplace is known as a ________ and is typically accomplished through a ________.

a. friendly takeover; tender offer
b. hostile takeover; merger
c. friendly takeover; merger
d. hostile takeover; tender offer

Answers

Answer:

d. hostile takeover; tender offer

Explanation:

The hostile takeover is the transaction of the merger in which the management of the firm i.e. targeted would not support and acquirer could attempt to gain the control for purchasing the enough shares. And this could be achieved via a tender offer

Therefore as per the given situation, the option d is correct

hence, the same is to be considered

A first step toward understanding organizational markets is recognizing the differences between industrial, reseller, and government markets.

a. True
b. False

Answers

Answer: True

Explanation:

To understand organizational markets, one must first realize that there are three main types of them: Industrial, reseller and government.

Industrial markets enable businesses to transact with each other. They trade raw materials and other goods to each other and process them to finished goods.

The reseller market does not involve any processing but rather firms buying from one and selling to another as middlemen.

The last market is the Government market. Any arm of government that purchases goods and services fall here including at local, state or federal level.

Which factors can affect a stock's price? Check all that apply.

Answers

Answer:

market

Explanation:

if there are less people in an area no one or little people will buy

Answer:

Factors that can affect stock prices

Company news and performance

Industry performance. Often, the stock price of the companies in the same industry will move in tandem with each other.

Investor sentiment. Investor sentiment or confidence can cause the market to go up or down, which can cause stock prices to rise or fall.

Explanation:

Which of the following stocks is LEAST sensitive to the movement of the overall stock market?

a. Starbucks
b. Home Depot
c. Amazon
d. Intel

Answers

Answer:

a. Starbucks

Explanation:

Stock markets maybe defined as the collection of exchanges and the markets  where the activities of buying, selling and the issuance of the shares of various publicly-held companies takes place.

In the context, Starbucks is the least sensitive to the movement of overall stock market as the stocks with the least beta will be the least sensitive to the movement.

The  Starbucks stock is LEAST sensitive to the movement of the overall stock market.

The following information should be considered:

The stock market refers to the collection of the exchanges & the marketing in which the purchasing & selling of shares are to be done. Also, Starbucks should be the least sensitive as it contains the least beta.

Therefore we can conclude that The  Starbucks stock is LEAST sensitive to the movement of the overall stock market.

Learn more: brainly.com/question/6201432

Consider the following statement: "Women have a duty to take direct action in providing freedom for slaves." Which of the following principles or movements would the speaker most likely support?

a. The Seneca Falls Convention
b. Separate Spheres Ideology
c. Republican Motherhood
d. The Underground Railroad

Answers

Answer: d. The Underground Railroad

Explanation:

Harriet Tubman was a woman best known for her contribution to freeing slaves when she used a system of contacts known as the ''Underground railroad'' to help hundreds of enslaved people escape.

She took direct action in providing freedom for those enslaved people and so the speaker would most likely support this movement over the other three that are in relation to women and their role in society.

Answer:

This is wrong. The answer is The Seneca Falls Convention

Explanation:

Accounting has its roots in the 15th century, when which of the following groups of people used the double entry accounting system? a) Italian merchants b) Greek fishermen c) Chinese traders d) Turkish craftsmen

Answers

Answer:

a) Italian merchants

Explanation:

The double entry book keeping was firstly establihsed and implemented by the northern italy in order to record day to day business transactions and it was spread over the Europe via different routes of trading and also it forms the standardised business accounting.

Therefore as per the given statement, the first option is correct

What is the effect of an increase in the price of fuel on the transportation services market where fuel is an input

Answers

Answer:

The supply will decrease.

Explanation:

Here are the options to this question :

A. The supply will increase.

B. The demand will decrease.

C. The supply will decrease.

D. The demand will increase.

Due to the increase in price of fuel, the cost of purchasing fuel would increase and this would make it more expensive to run transportation services. As a result, the supply of transportation services would fall. this would shift the supply curve for transportation services leftward. This would lead to a rise in price of transport services and a decrease in quantity suoplied.

Please check the attached image for a graph explaining this concept

Which of the following is reported as part of discontinued operations? Select one: a. Amortization expense. b. Impairment losses for intangible assets. c. Research and development costs. d. None of these answer choices are correct.

Answers

Answer: d. None of these answer choices are correct.

Explanation:

Amortization expense reflects the reduction in value of an intangible asset during its lifetime and so therefore is not a discontinued operation, Impairment losses for intangible assets are part of ongoing operations as well.

Research and development costs are period expenses and are not included as part of discontinued operations. None of these options are therefore correct.

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