If a firm permanently borrows $100 million at an interest rate of 8 percent, what is the present value of the interest tax shield? (Assume that the marginal corporate tax rate is 21 percent.)
A) $8.00 million
B) $5.60 million
C) $21.00 million
D) $26.67 million
Answers
The present value of the interest tax shield is: C) $21.00 million.
The interest tax shield refers to the tax savings resulting from deducting interest expenses from taxable income. To calculate the present value of the interest tax shield, we need to determine the present value of the tax savings over the life of the loan.
In this case, the firm borrows $100 million at an interest rate of 8 percent. The annual interest expense would be $8 million (8% of $100 million). Given a marginal corporate tax rate of 21 percent, the annual tax savings would be $1.68 million (21% of $8 million).
To calculate the present value of these tax savings, we discount the annual tax savings at the borrowing rate of 8 percent.
The present value of the interest tax shield over the life of the loan amounts to $21.00 million.
Learn more about tax here: brainly.com/question/31851456
#SPJ11
Related Questions
Which qualities of the voice are described below?
Proper ____ involves speaking clearly and not mumbling. Good _____
means using acceptable stress patterns
Proper
when saying words.
Answers
Answer: articulation; pronunciation
Explanation:
Proper articulation involves speaking clearly and not mumbling. Also, good pronunciation means using acceptable stress patterns when saying words.
Someone who is articulate wwn speaking is able to speak well, clearly and distinctly. This is important so that listeners can be able to differentiate between the words that are said and also get the message that is passed. Good Pronunciation simply means the standard and appropriate way to say a word.
The table below shows the measurements M1 and M2 taken by the same analyst. Draw a scatter plot of the data.
M1 0.243 0.352 0.357 0.469 0.444 0.555 0.552
M2 0.245 0.348 0.361 0.470 0.439 0.560 0.548
a.
C.
0.75
0.75
0.625
0.625
.
0.5
0.3
.
0.375
0.375
2
0.23
0.25
0.125
0.125
0.125
0.25
0.375
0.5
0.62
0.125
0.25
0.375
0.5
0.62
Answers
Answer:
Its C
Explanation:
Answer:
C
Explanation:
ifunny is dankreloaded
bonnie, a data analyst, needs to take time off from work to care for her elderly mother. according to the family and medical leave act, what is the maximum number of weeks of unpaid, job-protected leave that bonnie may take?
Answers
Bonnie can take 12 weeks of leave, according to the 1993 Family and Medical Leave Act.
According to the Family and Medical Leave Act, certain businesses must offer their staff 12 weeks of unpaid leave while still guaranteeing them a job when they return to work. Both businesses and employees must adhere to certain rules in order to qualify.
To be eligible to use unpaid leave under the Family Medical Leave Act, an employee must fulfill specific requirements. Some of the situations can include a worker having to care for a member of their immediate family who has serious medical issues. Finally, if a worker's serious health prevents them from working any longer, they may take unpaid leave under the Family Medical Leave Act.
Therefore, Bonnie may take 12 weeks of unpaid, job-protected leave.
Learn more about the Family Medical Leave Act here: https://brainly.com/question/28168171
#SPJ4
restrictive covenants are designed so as to protect both the bondholder and the issuer even though they may constrain the actions of the firm's managers. such covenants are contained in the bond's indenture. group of answer choices true false
Answers
The given statement "restrictive covenants are designed so as to protect both the bondholder and the issuer even though they may constrain the actions of the firm's managers. such covenants are contained in the bond's indenture" is True because Restrictive covenants are provisions within a bond's indenture designed to protect both the bondholder and the issuer.
These covenants impose certain limitations on the actions of the firm's managers to ensure that the interests of the bondholders are not compromised and that the issuer maintains financial stability. From the bondholder's perspective, restrictive covenants reduce the risk of the issuer defaulting on its obligations or engaging in activities that might negatively affect the bond's value. For instance, covenants may limit the issuer's ability to take on additional debt or require maintaining specific financial ratios.
Although restrictive covenants may constrain the actions of the firm's managers, they play an essential role in balancing the interests of both parties involved in the bond issuance. By having these provisions in place, bondholders can invest with more confidence, and issuers can demonstrate their commitment to financial prudence and responsible management.
Know more about restrictive covenants here:
https://brainly.com/question/31312681
#SPJ11
pls helppp
What is another name for an emergency fund?
A. 401(k)
B. Long tern debt
C. take home pay
D. a rainy day fund
Answers
Answer:
D. a rainy day fund
Explanation:
Do graduates from uf tend to have a higher income than students at fsu, five years after graduation? a random sample of 100 graduates was taken from both schools. Let muf be the population mean salary at uf and let mufsu be the population mean salary at fsu. How should we write the alternative hypothesis?.
Answers
The response is that the alternative hypothesis should state that the population mean salary of graduates from UF is significantly higher than the population mean salary of graduates from FSU, five years after graduation.
This can be composed as H1: muf > must. This implies that we are trying whether there is proof to help the case that UF graduates have a higher pay contrasted with FSU graduates.
It is vital to take note that this elective speculation is one-followed, as we are just keen on whether UF graduates have higher pay, not whether their pay is essentially unique about FSU graduates in one or the other heading. This elective speculation will be tried against the invalid theory, which accepts that there is no tremendous contrast in the populace mean compensation of graduates from UF and FSU.
Learn more about hypothesis:
https://brainly.com/question/28920252
#SPJ4
Marta is interviewing candidates for a position in the Human Resources department at her company. She is deciding who to interview by going through resumés and looking at the subject areas in which each candidate studied. Which four candidates would be the best choice for Marta to interview?
Answers
Answer:
C). Marisol, who studied communications and business
Explanation:
Marisol would be the best candidate to be interviewed for the position in the HR department as she has studies business and communications which is critical to ensure effective communication between the employee and the business. The HR professionals primarily function as the link between the two and help in maintaining healthy employee relations. They act as the leaders in the organization and with their efficient organization, decision-making, and management skills, they ensure the smooth functioning of the organization. Since Marisol has studied business and communications, she must possess these skills which would be the most suitable for the position. Hence, option C is the correct answer.
Answer:
B: Michelle, who studied communications and business
The pros and cons of new product concepts are analyzed during the idea generation phase of new product development.
True
False
Answers
Jackie has been selling gold rings for $50 each. her cost for the rings was $25. she learns that another store on the other side of the mall sells gold rings for $40. what information should jackie consider before deciding if she should change her price?
Answers
When adjusting the price of an established product, Jackie should have knowledge of the pricing considerations and strategies
What are the different types of pricing strategies?
There are 4 types of pricing strategies as follows :
Premium pricing strategySkimming pricing strategyValue pricing strategyPenetration pricing strategy.In the aforesaid scenario, Jackie will employ a value pricing approach, in which he will reduce the product's cost in order to attract buyers, hence increasing the product's perceived worth.
Thus,
Pricing strategies information should be considered before introducing any changes in the price of the product.
Learn more about Pricing:
https://brainly.com/question/14595156
#SPJ1
Which of the following is a misconception about marketing?
Marketing focuses on relationships.
Marketing focuses on satisfying the customer.
Marketing is equivalent to sales and advertising.
Marketing involves numbers.
Answers
Answer: The misconception is that marketing is equivalent to sales and advertising. While sales and advertising are important components of marketing, they are not the whole picture. Marketing is a broader concept that encompasses a variety of activities aimed at promoting and selling products or services.
Explanation:
Marketing involves researching and understanding customer needs and preferences, developing and promoting products or services to meet those needs, pricing products and services, and distributing them to customers through various channels. It also involves building and maintaining relationships with customers through customer service, after-sales support, and other activities.
So, while sales and advertising are important aspects of marketing, they do not define the whole field. Marketing is focused on relationships with customers and satisfying their needs, and it often involves the use of numbers to track and analyze customer behavior, market trends, and the effectiveness of marketing campaigns.
Which example is the best demonstration of initiative?
A. You don’t complain about the heavy workload you’ve been assigned.
b. You offer to take on some extra work when a coworker is out sick.
c. You agree to stay late to finish your work because you took a long lunch.
d. You always think carefully about a bad situation before proposing a solution.
Answers
Answer:
B
Explanation:
initiative isn't something we need to do but rather want to for someone or yourself, maybe to help.
Answer:
bbbbbbbbbbb
Explanation:
Music Media Ltd. prepares statements quarterly.
Part A:
Required:
1. Based on 2019 results, Music’s estimated tax liability for 2020 is $333,960. Music will accrue 1/28 of this amount at the end of each month (assume the installments are paid the next day). Prepare the entry on January 31, 2020, to accrue the tax liability and on February 1 to record the payment.
2. At year-end, December 31, the actual income tax for 2020 was determined to be $339,420. Prepare the adjusting entry on December 31 to record the accrual (assume 11 months have been accrued to date in 2020). Record the payment on January 1, 2021.
Part B:
Required:
3. Complete the following table assuming Music estimates its tax liability for the year 2020 to be $667,500. (Do not round intermediate calculations.)
4. Assuming that actual tax for the year 2020 was determined to be $812,000, prepare the appropriate adjusting entry at year-end to bring the balance in the Income Tax Expense account to the correct balance, assuming no accrual has yet been recorded for the fourth quarter.
5. Calculate Music’s actual profit for the year 2020.
Answers
1. The entry on January 31, 2020, to accrue the tax liability would be as follows:
Debit: Income Tax Expense (January) $11,927.14
Credit: Accrued Income Tax Payable $11,927.14
The entry on February 1, 2020, to record the payment would be:
Debit: Accrued Income Tax Payable $11,927.14
Credit: Cash $11,927.14
2. The adjusting entry on December 31, 2020, to record the accrual would be:
Debit: Income Tax Expense $327,709.91
Credit: Accrued Income Tax Payable $327,709.91
The entry on January 1, 2021, to record the payment would be:
Debit: Accrued Income Tax Payable $327,709.91
Credit: Cash $327,709.91
3. Estimated tax liability for the year 2020:
Quarter 1: $166,875 ($667,500 * 1/4)
Quarter 2: $166,875 ($667,500 * 1/4)
Quarter 3: $166,875 ($667,500 * 1/4)
Quarter 4: $166,875 ($667,500 * 1/4)
4. Adjusting entry at year-end to bring the balance in the Income Tax Expense account to the correct balance:
Debit: Income Tax Expense $144,500 ($812,000 - $667,500)
Credit: Accrued Income Tax Payable $144,500 ($812,000 - $667,500)
5. To calculate Music's actual profit for the year 2020, subtract the actual tax ($812,000) from the estimated tax liability ($667,500):
Actual profit = Estimated tax liability - Actual tax
Actual profit = $667,500 - $812,000
Actual profit = -$144,500
The entries provided demonstrate the accrual and payment of income tax liabilities for Music Media Ltd. The company estimates and accrues the tax liability each month based on a predetermined portion of the estimated annual tax liability. Adjusting entries are made at year-end to account for any differences between the estimated and actual tax liability. The actual profit for the year 2020 is calculated by subtracting the actual tax liability from the estimated tax liability, resulting in a negative value indicating a loss for the year.
To know more about tax liability, visit
https://brainly.com/question/16950901
#SPJ11
describe a company with a positive corporate culture.
Answers
A company with positive corporate culture states that where there is fairness and integrity in the work.
What is positive corporate culture?A positive corporate culture is defined as an enthusiastic workplace where there is the interest of employees in performing the given work as the company fosters individual personal and professional growth.
These types of Companies represent a fair chance to every individual indicating positive corporate culture as open and enhanced communication following the ethics and integrity of work life.
These type of companies emphasis on core values which helps them to achive the objective of the organization with the support of people.
Learn more about positive corporate culture, here:
https://brainly.com/question/24708559
#SPJ1
Which of the following is not one of the benefits of using electronic slides as a visual aid
Answers
Answer:
B. It is difficult to record points made during a meeting on an electronic slide.
Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the tax rate is 24 percent, what is the operating cash flow, or OCF
Answers
Answer:
$23,052
Explanation:
The computation of operating cash flow is shown below:-
Before that we have to determine the net income which is
Income statement
Sales $53,000
Cost ($24,200)
Depreciation ($2,550)
EBIT $26,250
Interest expense ($2,300)
Earnings before tax $23,950
Tax (5,748)
(24% × $23,950)
Net income $18,202
Now,
Operating cash flow = EBIT + Depreciation - Tax
= $26,250 + 2,550 - $5,748
= $23,052
Is the inflation rate can be measured by calculating the percentage change in the consumer price index?
Answers
The given statement "The inflation rate can be measured by calculating the percentage change in the consumer price index" is true because the Consumer Price Index (CPI) is a widely used measure of inflation that reflects the changes in the average price level of goods and services consumed by households.
The CPI is a measure of the average price level of a basket of goods and services consumed by households. It is calculated by comparing the cost of a fixed basket of goods and services over time, with the base year representing the reference period. When the CPI increases over time, it indicates that the cost of the basket of goods and services has increased and therefore inflation has occurred. The percentage change in the CPI between two periods is a measure of the inflation rate.
However, it is important to note that the CPI is just one of many measures of inflation, and it may not capture changes in the prices of all goods and services produced in an economy. For example, the GDP deflator is another measure of inflation that captures changes in the prices of all final goods and services produced in an economy. Therefore, while the CPI can be used to measure the inflation rate, it is important to consider other measures of inflation as well to get a more complete picture of changes in the overall price level of an economy.
To know more about the Inflation rate, here
https://brainly.com/question/16237747
#SPJ4
When recoding the conversation of preferred stock into common stock , if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value , the difference is debited to:
a. Additional paid- in capital on preferred stock.
b. Additional paid-in capital on common stock
c. Shareholders' Equity
d. Retained Earnings.
Answers
When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to additional paid-in capital on common stock. Therefore, the correct option is b.
This is because the additional paid-in capital on common stock account reflects the amount of money that shareholders have paid in excess of the par value of the common stock. When the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is recorded as a debit to the additional paid-in capital on common stock account to reflect the decrease in the amount of money paid in excess of the par value of the common stock.
In other words, the additional paid-in capital on common stock account is used to record the difference between the total contributed capital eliminated in regard to the preferred stock and the common stock par value in order to properly reflect the conversion of preferred stock into common stock.
Learn more about Preferred stock:
https://brainly.com/question/18068539
#SPJ11
Fancy Nails cost formula for miscellaneous expenses is $30 per operating day plus $0.25 per client served. Fancy Nails' miscellaneous expense budget in a month when the business is going to be open for 25 days and they expect to serve a total of 2,400 clients is $______. (Enter your answer as a whole number.)
Answers
Answer:
2430.25
Explanation:
I hope it helps you
Based on the rate for the miscellaneous expenses, Fancy Nails' miscellaneous expenses for 25 days is $1,250.
What are the miscellaneous expenses for 25 days?Given the cost formula, the miscellaneous expenses will be:
= (Cost per operating day x Number of days) + (Cost per client x number of clients)
Solving gives:
= (30 x 25) + (0.25 x 2,000)
= 750 + 500
= $1,250
In conclusion, Fancy Nails will have miscellaneous expenses of $1,250.
Find out more on miscellaneous expenses at https://brainly.com/question/9928750.
corp. has just announced a dividend of $0.80 for this year and $0.845 for the next year. Dividends are expected to grow at a constant rate indefinitely. What is the current stock price if the required return is 13.1 percent? $8.55 $9.35 $11.30 $9.57
Answers
To calculate the current stock price using the constant growth dividend model, we can use the formula:
Stock Price = Dividend / (Required Return - Dividend Growth Rate)
Given the following information:
Dividend for this year (D0) = $0.80
Dividend for the next year (D1) = $0.845
Required Return = 13.1%
To determine the dividend growth rate, we can use the formula:
Dividend Growth Rate = (Dividend for Next Year - Dividend for Current Year) / Dividend for Current Year
Dividend Growth Rate = ($0.845 - $0.80) / $0.80
Dividend Growth Rate = 0.05625 or 5.625%
Now, let's calculate the current stock price:
Stock Price = $0.80 / (0.131 - 0.05625)
Stock Price = $0.80 / 0.07475
Stock Price ≈ $10.71
Therefore, the closest option to the current stock price is $11.30.
Know more about constant growth dividend model here:
brainly.com/question/15798462
#SPJ11
Which internal control procedure addresses the idea that the likelihood of employee fraud or theft?
Answers
It could be controlled by the Separation of duties of the employee in the respective company.
Usually, frauds occur when there's a mixture of everything equally. Everyone in the company is working without any discrimination. Due to that theft and fraud happen in the firms as someone is playing in someone's place.
To avoid this process companies are divided into different departments to which they are providing their services in different ways. In companies therefore there's a need for more than one sign on the cheque.
By separating the duties and departments more than one person is performing the same actions or tasks therefore companies are safe from fraud and theft.
For more questions like Internal control Procedure visit the link below:
https://brainly.com/question/15032474
#SPJ4
Explain the tradeoffs involved in setting an ideal level of inventory for a
particular product. What are the costs if too much is maintained? What are
the costs if too little is maintained?
Answers
The more inventory a company holds, the more space is needed, and space costs money
Too little? Less money and less product being sold.
reasons why biden/trump would make a good president WITHOUT mentioning the opposing canidate.
Answers
Answer:
please stop talking bout this stuff but biden is going to raise taxes and take away LGBTQ rights soo yeah that's not the best thing
Answer:
Trump will be a great president
Explanation:
VOTE FOR TRUMP
Identify one action that the Walmart organization could take to help ensure that customers recognize the integrity of the company's marketing efforts. Justify your answer.
Answers
One action that the Walmart organization could take to help ensure that customers recognize the integrity of the company's marketing efforts is to be transparent in their advertising and promotions. This can be justified by the following steps:
1. Provide clear and accurate information: Walmart can ensure that all the information provided in their marketing campaigns is honest, accurate, and easy to understand. This includes providing clear details about product features, prices, and any applicable terms and conditions.
2. Use evidence and proof: Walmart can back up their marketing claims with evidence and proof. This can include providing statistics, research findings, customer testimonials, or third-party endorsements to support the claims made in their advertising.
3. Display customer reviews: Walmart can make it easy for customers to access and leave reviews about their products and services. By displaying genuine customer feedback, both positive and negative, Walmart demonstrates transparency and allows customers to make informed decisions.
4. Engage with customers: Walmart can actively engage with customers through various channels, such as social media, online forums, or customer service helplines. This provides an opportunity for customers to ask questions, seek clarifications, and voice any concerns they may have about the company's marketing efforts.
5. Adhere to ethical practices: Walmart can ensure that their marketing efforts comply with ethical standards and industry regulations. This includes avoiding deceptive or misleading advertising practices, respecting customer privacy, and being accountable for any claims or promises made in their marketing campaigns.
To know more about Advertising visit:
https://brainly.com/question/32251098
#SPJ11
What is a trade off.
Answers
Answer:
the exchange of something valuable
Explanation:
Answer:
A trade-off is exchange something of value, especially as part of a compromise.
Explanation:
Write the definition in your own words
Profit:
_________________________________________________________________________________________________________
Revenue:
_________________________________________________________________________________________________________
Expenses:
_________________________________________________________________________________________________________
Net Income:
_________________________________________________________________________________________________________
Net Loss:
Answers
In accounting, profit, revenue, expenses, and net income/loss are integral and they are defined as:
Profit - returns on revenue after expenses. Revenue - returns from selling goods or providing services. Expenses - costs incurred to run business. Net income = profit acquired after taxation. Net loss - losses when expenses are more than revenue. What comprises the Income Statement?The Income statement includes the revenue which is the amount of sales or services provided by the company in a period.
The costs of running the company (expenses) are deducted from the revenue to find the profit. This can also be called the net income.
A net loss comes about when the expenses are more than revenue and this is not an ideal situation for companies.
Find out more on the income statement at https://brainly.com/question/21851842.
#SPJ1
one of these statements regarding the difference between the requirements for a qualifying child and the requirements for a qualifying relative is false. which is it?
Answers
The primary distinction between a qualified child as well as a qualifying cousin is that there is no restriction on the age of a qualified relative.
A qualifying kid should be underneath the age of 13 or completely but also permanently disabled to be eligible for the credit towards child and childcare vouchers expenses. The definition of a qualified child was made without consideration of the exceptions for abducted children including the children of divorced as well as separated parents.
The primary distinction between a qualified child as well as a qualifying cousin is that there is no restriction on the age of a qualified relative. Even non-relatives who are eligible to be claimed as dependents are considered qualifying relatives.
To know more about qualified child
https://brainly.com/question/14328499
#SPJ4
what is the index that tracks the top 500 u.s. stocks?
Answers
Answer: The S&P 500 Index
Explanation:
What will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected?
Answers
In the bond market if the government imposes a limit on the amount of daily transactions, liquidity of bonds relative to other assets will decrease, increasing the interest rate and lowering bond's prices.
In the bond market various debt instruments are bought and sold by a variety of entities. In the bond market, corporations and governments issue bonds in order to raise debt capital to fund operations or seek growth opportunities.
If the government imposes a limit on the amount of daily transactions in the bond market, then bonds will become less liquid with respect to alternative assets, by also lowering bond's prices and increasing the interest rate.
Hence, bonds are issued by governments and corporations when they want to raise money.
To learn more about bond market here:
https://brainly.com/question/14314042
#SPJ4
The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the prelist going to the cashier and to accounting, is an example of which type of control? A. Detective. B. Corrective. C. Preventive. D. Directive.
Answers
The procedure requiring preparation of a prelisting of incoming cash receipts, with copies of the prelist going to the cashier and to accounting, is an example of a preventive control. Option C.
Preventive controls are designed to prevent errors or fraud from occurring in the first place. By having a prelisting of incoming cash receipts, the company can ensure that all cash received is properly accounted for and that any discrepancies can be detected early on. This helps to prevent any potential fraud or errors from occurring.
Additionally, the copies of the prelist going to both the cashier and accounting ensure that there is a separation of duties, which is another important aspect of preventive controls. By having different individuals responsible for different aspects of the accounting process, the company can reduce the risk of fraud or errors occurring.
In contrast, corrective controls are designed to correct errors or fraud after they have occurred, while detective controls are designed to detect errors or fraud after they have occurred.
Directive controls, on the other hand, are focused on directing or guiding individuals in their job duties, rather than preventing or correcting errors or fraud. So Option C is correct.
For more questions on incoming visit:
https://brainly.com/question/31452065
#SPJ11
Describe one accountability issue of a business
Answers
Answer:
Accountability in the workplace is about employees taking responsibility and ownership for their decisions, actions, performance and behaviour. Accountability in the workplace is also about building trust and staying committed to doing the right thing for the business consistently.