If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC. True False

Answers

Answer 1

Answer:

The answer is "True".

Explanation:

The marginal rate is indeed the extra income tax about any dollar earned as income. Its annual tax rate is the total tax paid divided by the total earnings. This marginal rate of 10% will impose a tax of 10 cents on every following income spent. that's why the given statement is true because the cost of debt [tex]= k\times (1-t)[/tex]   and its t value will increase the cost of the decrease.


Related Questions

State and explain elements of organizational structure?

Answers

Answer:

Explanation:

Organizational structure could be explained as a connected workflow through which an organization is strategically setup to operate.

Five elements create an organizational structure: job design, departmentation, delegation, span of control and chain of command

Job design : This element allows the definition of individual job role, the demands of each job position, duties, responsibilities and the key performance indicators.

Departmentation : Here, individual job roles which seems similar and have similar requirement are grouped into a certain defined category called department. Deparmentation may be ascribed based on task, job role, task force and so on.

Delegation : This involves process handling and management, each process and logical department has to be headed by a defined individual or group of persons.

Span of control : Definitions control and authority such that delegates know their limits and when to initiate their organizational power.

Chain of command : This is crucial as organizations aee arranged and operated hierarchically, the command line is defined such that it makes reporting easier.

Green Thumb Nursery has 53,000 shares outstanding at a market price of $63.57 per share. The earnings per share are $3.57. The firm has total assets of $362,000 and total liabilities of $207,000. Today, the firm announced a share repurchase for $117,000 of its stock. What is the earnings per share after the repurchase

Answers

Answer: $3.70

Explanation:

Earnings per share = Net income / Number of shares

Net income = Earnings per share * Number of shares

= 3.57 * 53,000

= $189,210

The number of shares that Green Thumb bought back is:

= Stock repurchase amount / Market price of shares

= 117,000 / 63.57

= 1,840 shares

After the repurchase the number of shares is:

= 53,000 original shares - 1,840

= 51,160 shares

New EPS = 189,210 / 51,160

= $3.70

Peterkin Inc needs to arrange financing for its expansion program. Sandy Bank offers to lend Peterkin the required funds on a loan in which interest must be paid monthly, and the quoted rate is 6 percent. Money Plus Bank will charge 6.8 percent, with interest due at the end of the year. Which bank should Peterkin take the loan from

Answers

Answer:

Sandy Bank

Explanation:

to determine which bank  Peterkin would prefer a loan from, calculate the effective annual interest rate

the bank with the lower effective annual interest rate would be preferred

Effective annual rate = (1 + APR / m ) ^m - 1

M = number of compounding

Sandy Bank : (1 + 0.06/12)^12 - 1 = 0.062 = 6.2%

Money Plus Bank = 6.8

Sandy bank has a lower effective annual interest rate and would be preferred for the loan

Knowing what you have learned about customer service situations, why do win-lose situations often become lose-lose situations? What can an employee do to avoid this from occurring?

Answers

Answer:

Explanation:

In business a win-lose situation would mean that one is correct while the other is wrong. This often becomes a lose-lose situation because one party will get upset and refuse to do business with the other party, this means that one party ultimately loses out on the profit of the potential transaction and the other party loses out on the product/service that they wanted. Therefore, making it a lose-lose situation. The best thing that an employee can do is to de-escalate the situation and look for an alternative solution so that the customer leaves happy, the business gets the transaction, and they do not lose money or customers.

g e-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix? A. absolute advantage B. collective bargaining C. comparative advantage D. competitive advantage

Answers

Complete Question:

Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions.

Answer:

C. comparative advantage

Explanation:

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

Generally, comparative advantage gives a country or business firm a stronger sales margin than their competitors because they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

Hence, the term which best describes Futura-Core's abilities in comparison to Core-Dynamix is comparative advantage.

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request.
Calculate the effect on Molding Division’s net income if it accepts the $18 transfer price.

Answers

Answer:

the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

Explanation:

The computation of the effect on Molding Division’s net income if it accepts the $18 transfer price is shown below:

= Transfer price - variable cost per unit

= $18 - $12

= $6 per unit

Hence, the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

So, the same is to be considered and relevant

Assume that you have a three-year-old daughter and you have come to appreciate the power of saving and investing. Can you open up and put money into a Roth IRA in your child's name so that she can benefit from many years of compounding

Answers

Answer:

No.

You cannot open up and put money into a Roth IRA in your child's name.

Explanation:

The IRS allows that any child, regardless of age, can contribute to an IRA if they have earned income.  This means that only a child that has earned income can have an IRA opened for him or her.  As the child is still underage, the IRA must be set up as a custodial account by the parent or another adult. This implies that the child cannot operate the account during the period she is underage but can have money saved in the account from her earned income.

If an employee always stays on-task and
typically finishes work in a timely
manner, what type of control is required?
A. Flexible
B. Close
C. Limited
D. Open

Answers

the answer is c because hes limited to what he can controll

Companies must disclose when they give products to online reviewers. rue or false

Answers


Companies must disclose when they give products to online reviewer‘s so the answer is true True

Sheffield Corp. had 205000 shares of common stock, 20300 shares of convertible preferred stock, and $1580000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 39800 shares of common stock. During 2021, Sheffield paid dividends of $1.00 per share on the common stock and $4 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $599000 and the income tax rate was 35%.

Diluted earnings per share for 2021 is :__________

Answers

Answer:

Diluted earnings per share for 2021 is: $2.19 per share.

Explanation:

Amount of increase in net income if bonds are converted = Total value of convertible bonds * Bond rate * (100% - Tax rate) = $1580000 * 4% * (100% - 35%) = $41,080

Total earnings available to Equity Shareholders = Net income + Amount of increase in net income if bonds are converted = $599000 + $41,080 = $640,080

Number of shares of common stock = 205,000

Number of common shares obtainable from preferred stock = 39,800

Number of common shares obtainable from convertible bonds = (Total value of convertible bonds / $1,000) * 30 = ($1580000 / $1,000) * 30 = 47,400

Total number of shares outstanding = Number of shares of common stock + Number of common shares obtainable from preferred stock + Number of common shares obtainable from convertible bonds = 205,000 + 39,800 + 47,400 = 292,200

Diluted earnings per share = Total earnings available to Equity Shareholders / Total number of shares outstanding = $640,080 / 292,200 = $2.19 per share

Therefore, we have:

Diluted earnings per share for 2021 is: $2.19 per share.

What is the meaning of assessment

Answers

Answer:

the meaning of assessment is the evaluation or estimation of the nature, quality, or ability of someone or something. like your being tested on you knowledge of something, so you have a test.

Explanation:

Answer:

the act of judging or deciding the amount, value, quality, or importance of something, or the judgment or decision that is made.the evaluation or estimation of the nature, quality, or ability of someone or something.

Tại sao nói Marketing vừa là khoa học, vừa là nghệ thuật?

Answers

Answer:

Sorry I can't understand.....

did juror 8 act as an objective force in the decision making process

Answers

Explanation:

sana nakatulong

pa brainliest nadin po

kung nagustuhan nyo anf sagot

To an economist, money is a synonym for which of the following? Question 10 options: income credit wealth salary none of the above

Answers

Answer:

None of the above

Explanation:

To an economist, money has the following characteristics

1. It is a means of exchange

2. It is regarded as a unit of account

3. Money can also be defined as a store of value.

Therefore to an economist, money is not synonymous with income, wealth, credit and salary.

So the last option answers the question.

Which scenario below correctly describes an unearned revenue adjustment injury

Answers

Answer:

I just need points im so sorry but good luck

8. Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer?

Answers

Answer:

Following are the responses to the given question:

Explanation:

Banks are just an integral aspect of an economy's flow of money. When a big steel factory fails, jobs and GDP will be lost, yet financing inside the economy would not be available because of the main banking collapse in decrease its availability of credit throughout the industry, a large bank is unable to do even more damage to the economy than a huge metal fabricator.

You invest $2,100 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a Treasury bill with a rate of return of 7%. __________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 13%.

Answers

Answer: 65%

Explanation:

The formula that's used for the calculation of the portfolio's standard deviation will be:

(Standard deviation of portfolio)² = (Weight of asset)² × (Standard deviation of asset)²

(Weight of asset)² = (0.13)²/(0.2)² = 0.0169 / 0.04

= 0.4225

Weight of asset = ✓0.4225

Weight of asset = 0.65

Weight of asset = 65%

Therefore, 65% of the portfolio should be invested.

Enterprise mashup technology does not provide a mechanism to easily customize and share knowledge throughout the company.

a. True
b. False

Answers

I think it’s true hope this help
The answer is true. Hope it helped

XYZ has the following for the January budget: Budgeted sales are $210,000; Cost of goods sold averages 66% of sales; Marketing costs are $3,600; Distribution costs are $5,300; Administrative costs are $10,100. The budgeted nonmanufacturing costs are

Answers

Answer:

Budgeted manufacturing cost= $138,600

Explanation:

Giving the following information:

Budgeted sales are $210,000

Cost of goods sold averages 66% of sales

To calculate the budgeted manufacturing costs, we need to use the following formula:

Budgeted manufacturing cost= sales*COGS ratio

Budgeted manufacturing cost= 210,000*0.66

Budgeted manufacturing cost= $138,600

Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center

Answers

Answer:

Influencer

Explanation:

An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.

They have good social relations and this is an asset in directing customer buying decision.

In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.

This knowledge will be beneficial in the buying centre, where she can be an influencer.

If Fees Earned has been credited, it is most likely that:
A. a correcting entry for the overstatement of revenue was recorded. B. a customer paid in advance
C. services were provided.
D. the owner made an investment.​

Answers

Answer:

C. services were provided.

Explanation:

If Fees Earned has been credited, it is most likely that: "services were provided."

For fees to be earned it means something must have been done in exchange for the fee. Considering this is a business-related issue, then it is correct to conclude that "If Fees Earned has been credited, it is most likely that: services were provided."

Option A is not correct because the overstatement of revenue is not related to the fee warmed being credited.

Option B is not correct, because a payment made in advance does not correlate to a fee earned. Option D is not correct as well, because an investment has nothing to do with a few earned.

Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accommodate this sales level. The company has a steady profit margin of 20 percent with a 30 percent dividend payout. How much external financing will Tobin Supplies Company have to seek

Answers

Answer:

$17,200

Explanation:

Calculation to determine How much external financing will Tobin Supplies Company have to seek

Net Income=[$520,000 x 20%]

Net Income = $104,000

Dividend Pay-out= [$104,000 x 30%]

Dividend Pay-out = $31,200

Additions to Retained Earnings = [$104,00 - $31,200]

Additions to Retained Earnings=$72,800

Now let determine the The External Financing Needed using this formula

The External Financing Needed = Increase in Assets – Additions to retained earnings

Let plug in the formula

The External Financing Needed= $90,000 - $72,800

The External Financing Needed= $17,200

Therefore The External Financing Needed is $17,200

Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the future value of an ordinary annuity?
1) PMT x {1 – [1/(1 + r)nn]}/r
2) PMT x {[(1 + r)nn – 1]/r}
3) FV/(1 + r)nn
4) PMT x {[(1 + r)nn – 1]/r} x (1 + r)

Answers

Answer:

b.  PMT x {[(1 + r)nn – 1]/r}

Explanation:

The formula that should be calculated for the future value of an ordinary annuity is shown below:

= PMT × {[(1 + r)^n - 1] ÷ r}

Here

PMT denotes the coupon payment

r denotes the rate of interest

n denotes the time period

So as per the given situation, the option b is correct

The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________

Answers

Answer:

Written off = $17,200

Explanation:

                               Allowance for Bad Debt Account

Debtors (Write off) (Bal. fig)  $17,200     Beginning Bal.         $10,600

                                                                 Bad debt expense  $18,800

Ending Balance                     $12,200

Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.

The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130 units at $8 Sales 9,090 units at $11. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method.

Answers

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 50,000 $ 31,000 $ 60,000 $ 140,000 $ 30,000 $ 311,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)

Answers

Answer:

3.35 years

Explanation:

Computation of the payback period for this investment

Year Cash Inflow (outflow) Cumulative Net Cash Inflow (Outflow)

0 ($ 190,000) -

1 $ 50,000 $ 50,000

2 $ 31,000 $ 81,000

3 $ 60,000 $ 141,000

4 $ 140,000 $ 281,000

5 $ 30,000 $ 311,000

Payback period= 3.35 Years

OR

Payback period = 3 years + ($190,000 - $141,000)/$140,000

Payback period= 3 years + ($49,000/$140,000)

Payback period= 3 years + 0.35

Payback period= 3.35 years

Therefore the payback period for this investment is 3.35 years

When a project involves an entirely new product line, the firm may be able to obtain betas from to calculate a weighted average cost of capital (WACC) for its new product line.
Consider the case of another company. Davis Printing is evaluating two mutually exclusive projects. They both require a $5 million investment today and have expected NPVs of $1,000,000. Management conducted a full risk analysis of these two projects, and the results are shown below.
Risk Measure Project A Project B
Standard deviation of project's expected NPVs $400,000 $200,000
Project beta 0.9 1.1
Correlation coefficient of project cash flows (relative to the firm's existing projects) 0.7 0.5
Which of the following statements about these projects' risk is correct? Check all that apply. ?
A. Project B has more corporate risk than Project A.
B. Project A has more corporate risk than Project B.
C. Project B has more stand-alone risk than Project A.
D. Project A has more market risk than Project B

Answers

Answer:

A. Project B has more corporate risk than Project A.

C. Project B has more stand alone risk than project A.

Explanation:

Project A and Project B are mutually exclusive projects. Both the projects require initial investment of $5 million. The project beta for Project A is 0.9 while project beta for Project B is 1.1, this indicates project B is more riskier than Project A.

Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices

Answers

Answer:

Net income from operating activities = $77000

Explanation:

Below is the calculation for Net income from operating activities:

Given the net income = $60000

Decrease in accounts receivable = $8000

Increase in accounts payable = $4000

Depreciation = $5000

Add the values in the net income in order to get the net income from operating activities.

Net income from operating activities = 60000 + 8000 + 4000 + 5000

Net Income from operating activities = $77000

Warner Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of the raw materials and $44,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. g

Answers

Answer and Explanation:

The journal entry is given below:

Work in process - finishing department $28,800 ($62,200 - $44,200) × 160%

Work in process - assembly department $70,720 ($44,200 × 160%)

    To Manufacturing overhead $99,520

(Being the overhead allocated to assembly and finishing department)

Here the work in process is debited as it increased the assets and the manufacturing overhead is credited as it decreased the expesne

The Okula Corporation has a one-year insurance policy that was purchased for $2,000. Three months have passed since the purchase. The adjusting entry for the insurance policy would include a

Answers

Explanation:

Amount paid for 3 months = 3 month[Total amount / 12 months]

Amount paid for 3 months = 3[2000/12]

Amount paid for 3 months = $500

Books of (..... LTD)

Particular                                   Amount  Amount

Cash               A/c Debit              $500

To Prepaid insurance    A/c                          $500

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