Reference no: EM131311677
Refer to Exhibit 18.1 start data below. What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding? a. $5,049,939 b. $5,315,725 c. $5,595,500 d. $5,890,000 e. $6,200,000
Amount: $50,000,000 Call premium %: 14% Old rate: 14.00% Tax rate: 40% Original life: 30 New rate: 11.67% Years ago issued: 5 New life: 25 Orig. flotation cost: $3,000,000 New flotation cost: $3,000,000 Years remaining on old bond: 25 Old issue flotation costs: Remaining unexpensed = (new life/original life)($flotation cost) = $ Tax saving on unexpensed float cost = $remaining unexpensed(tax rate) = $(#) = $
After tax cost of call premium: %($Amount)(untaxed%) = $
Flotation costs on new issue: $
Net after-tax cost to call the bonds: $
|
What is the role of a supply chain management system
: Why is the traditional buy-hold-sell inventory model an expensive and potentially risky one?- What is the role of a supply chain management (SCM) system?
|
|
Identify the current compliance requirements and liabilities
: Manage Finances (BSBFIM601) - BSB60215 Advanced Diploma of Business - Analyse the case study information and write summery of the current status of the company and Identify the current statutory requirements for tax compliance and list and calculate..
|
|
What does the given statement say to you
: Joseph Schumpeter said that "perfect competition is not only impossible, but inferior, and has no title to being set up as a model of ideal efficiency." What does this statement say to you?
|
|
Explain the purpose of a web form
: Explain the purpose of a web form. In your discussion, list and describe some of the common elements found within forms (e.g., radio buttons, text boxes, etc.).
|
|
Net after-tax cost to call the bonds
: Refer to Exhibit 18.1 start data below. What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding? a. $5,049,939 b. $5,315,725 c. $5,595,500 d. $5,890,000 e. $6,200,000. After tax cost of call prem..
|
|
Difference between front office and back office systems
: How does CRM fit into the RGT framework?- What is the difference between front-office and back-office systems?
|
|
Stevens-henager academic resource center
: Using the resources available in the Stevens-Henager Academic Resource Center (SHARC) as well as other web research resources, write a two-page paper (APA format) highlighting five common strategies that all a web developer/programmer can use to e..
|
|
Discuss the economic basis for this assertion
: There is evidence of widespread voluntary unemployment. If people prefer leisure to working, should this be of any concern to government?
|
|
What do you feel has accounted for the rapid development
: Discussion - Why the Rapid Development? What do you feel has accounted for the rapid development of countries like South Korea, China, Brazil, and India? Explain your reasoning.
|