Icu window, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. the issue makes semiannual payments and has an embedded cost of 6.1 percent annually. what is icu's pretax cost of debt? if the tax rate is 38 percent, what is the aftertax cost of debt?

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be: