Debt Capital $80,000
Business, 02.04.2020 00:49 jasmine2555
Type the correct answer in the box. Spell the words correctly.
Debt Capital $80,000
Income before interest and tax $50,000
Interest on debt capital 5%
Tax rate 40%
What is the net savings on the interest calculated after tax?
The after-tax cost of debt capital is
percent.
Answers: 1
Another question on Business
Business, 22.06.2019 09:40
Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?
Answers: 1
Business, 22.06.2019 10:00
Frolic corporation has budgeted sales and production over the next quarter as follows. the company has 4100 units of product on hand at july 1. 10% of the next months sales in units should be on hand at the end of each month. october sales are expected to be 72000 units. budgeted sales for september would be: july august september sales in units 41,500 53,500 ? production in units 45,700 53,800 58,150
Answers: 3
Business, 22.06.2019 11:10
How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? round to the nearest cent. do not include a dollar sign in your answer. (i.e. if your answer is $432.51, then type 432.51 without $ sign)
Answers: 1
Business, 22.06.2019 12:10
The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)
Answers: 1
You know the right answer?
Type the correct answer in the box. Spell the words correctly.
Debt Capital $80,000
Debt Capital $80,000
Questions
History, 20.02.2020 17:25
History, 20.02.2020 17:25
Chemistry, 20.02.2020 17:25
Computers and Technology, 20.02.2020 17:25
Mathematics, 20.02.2020 17:25
Health, 20.02.2020 17:26
Computers and Technology, 20.02.2020 17:26
Mathematics, 20.02.2020 17:26
History, 20.02.2020 17:26
