What is the annual net cash cost

Assignment Help Accounting Basics

Reference no: EM13700976

If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

a. $3,000,000

b. $45,000

c. $150,000

d. $105,000

Reference no: EM13700976

Questions Cloud

The stoneland company was in the construction business. : The Stoneland Company was in the construction business. In building its Balanced Scorecard, managers interviewed many of its current and potential customers. They found that some customers were highly price-sensitive and wanted to continue busi..

Automated process of accounting information systems : Similar to any business, Kudler Fine Foods uses payroll, accounts payable, accounts receivable, and inventory processes. All four of these processes might be improved by the use of accounting information systems. Your accounting firm has assign..

Prepare a production budget for the first quarter : Company XYZ produces three products; p1, p2, and p3. The sales department has projected that we can sell 15,000 of p1 and p2 and 22,500 of p3. The company wants an ending inventory of each equal to 10% of sales. Current inventories are at 1300..

Assess the organization financialhealth : Accounting-basedperformance evaluation is used regularly to assess the organization's financialhealth and to inform both internal and external stakeholders. Examining costcenters, profit centers, and investment centers is often part of this kin..

What is the annual net cash cost : If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

Preparing financial statements based on data : After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.

One day the new ceo of the food service division : One day the new CEO of the Food Service Division (who happened to have a Marketing background) stopped by your office with a sheet of paper, handed it to you and said, "I just got back from this financial symposium and I heard a lot of terms an..

Offset the year-end inventory balance with a fund balance : Why do some accountants believe that it should offset the year-end inventory balance with a fund balance-non-spendable when no comparable fund balance is required for cash, taxes receivable, or most other assets?

How do you know that the information is secure from phishing : Computer system provides protection using the Bell-La Padula policy. How would a virus spread and how do you know that the information you type in is secure from phishing?

User Account

All Pages