Xyz company earned operating income of $1,500,000 before income taxes. capital employed equaled $10,000,000, of which $1,000,000 of mortgage bonds paying 8 percent interest, $3,000,000 unsecured bonds paying 9 percent interest, and $6,000,000 common stock with 10 percent risk premium. the rate on long-term treasury bond is 5 percent. the marginal tax rate is 40%. calculate the economic value added. is the company creating or destroying wealth?
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Business, 21.06.2019 14:00
Jason day company had bonds outstanding with a maturity value of $300,000. on april 30, 2017, when these bonds has an unamortized discount of $10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value $300,000).
Answers: 2
Business, 21.06.2019 15:20
The beginning inventory is expected to be 2,000 cases. expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. the number of cases the company must purchase during the month is multiple choice 9,000 cases. 10,000 cases. 11,000 cases. 13,000 cases.
Answers: 1
Business, 21.06.2019 16:10
Reliable electric is a regulated public utility, and it is expected to provide steady dividend growth of 5% per year for the indefinite future. its last dividend was $6 per share; the stock sold for $50 per share just after the dividend was paid. what is the company’s cost of equity? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Answers: 2
Business, 22.06.2019 06:00
Why might a business based on a fad be a good idea? question 2 options: fads bring in the most customers. some fads are longer lasting than expected. fads have made some business owners incredibly wealthy. fads can take a business in a new direction.
Answers: 2
Xyz company earned operating income of $1,500,000 before income taxes. capital employed equaled $10,...
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