DuPont reports in a recent balance sheet $598 million of 5.25 percent notes payable due in 2016.
Question:
The company’s income tax rate is approximately 19 percent.
a. Compute the company’s after-tax cost of borrowing on this bond issue stated as a total dollar amount.
b. Compute the company’s after-tax cost of borrowing on this bond issue stated as a percentage of the amount borrowed.
c. Describe briefly the advantage of raising funds by issuing bonds as opposed to stocks.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
a Annual interest expense 598 million x 525 31395 million million Less ...View the full answer
Answered By
Hassan Imtiaz
The following are details of my Professional Experience. Responsibilities Eight years of demanding teaching experience in the field of finance and business studies at Master’s Level. Completion of the given tasks within given time with quality and efficiency. Marketing professional with practical experience in and solid understanding of a diverse range of management applications, including market analysis, sales and marketing, team building and quality assurance. I have excellent skills to approach deal and sustain corporate clients / customers by demonstrating not only extraordinary communication and interpersonal skills but also high caliber presentation, negotiation and closing skills. Manage and follow up the day-to-day activities. Manage and co-ordinate the inventories. Fulfillment of all the tasks assigned.
The following are details of my Areas of Effectiveness. Finance 1. Corporate Finance 2. Advanced Corporate Finance 3. Management of Financial Institutions 4. International Financial Management 5. Investments 6. Fixed Income 7. Real Estate Investment 8. Entrepreneurial Finance 9. Derivatives 10. Alternative Investments 11. Portfolio Management 12. Financial Statement Analysis And Reporting (US GAAP & IFRS) 13. International Financial Markets 14. Public Finance 15. Personal finance 16. Real estate 17. Financial Planning Quantitative Analysis 1. Time Value Of Money 2. Statistics 3. Probability Distribution 4. Business Statistics 5. Statistical Theory and Methods Economics 1. Principles of Economics 2. Economic Theory 3. Microeconomic Principles 4. Macroeconomic Principles 5. International Monetary Economics 6. Money and Banking 7. Financial Economics 8. Population Economics 9. Behavioral Economics International Business 1. Ethics 2. Business Ethics 3. An introduction to business studies 4. Organization & Management 5. Legal Environment of Business 6. Information Systems in Organizations 7. Operations Management 8. Global Business Policies 9. Industrial Organization 10. Business Strategy 11. Information Management and Technology 12. Company Structure and Organizational Management Accounting & Auditing 1. Financial Accounting 2. Managerial Accounting 3. Accounting for strategy implementation 4. Financial accounting 5. Introduction to bookkeeping and accounting Marketing 1. Marketing Management 2. Professional Development Strategies 3. Business Communications 4. Business planning 5. Commerce & Technology Human resource management 1. General Management 2. Conflict management 3. Leadership 4. Organizational Leadership 5. Supply Chain Management 6. Law 7. Corporate Strategy Creative Writing 1. Analytical Reading & Writing Other Expertise 1. Risk Management 2. Entrepreneurship 3. Management science 4. Organizational behavior 5. Project management 6. Financial Analysis, Research & Companies Valuation 7. And any kind of Excel Queries
4.80+
150+ Reviews
230+ Question Solved
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Question Posted:
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Accounting questions
-
DuPont reports in a recent balance sheet $299 million of 6.50 percent bonds payable due in 2028. The company's effective income tax rate is approximately 27 percent. a. Compute the company's...
-
The following financial assets appeared in a recent balance sheet of Apple Computer, Inc. (dollar amounts are stated in millions): Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . ....
-
The following information was reported in a recent balance sheet issued by Microsoft Corporation. 1. The book value of property and equipment is listed at $14.7 billion (net of depreciation). Related...
-
Problem 4: The two compensator circuits (Fig. P4a) are used to improve the closed-loop system performance: 1) Derive the transfer functions to characterize the two circuits, and show that they can be...
-
Find the indicated derivatives in the following 12. d/dx(x6 In x) 14. y for y =In(2x3 - 3x)
-
In the proof of Theorem 3.18, verify that \(\hat{F}_{n}(t)-F(t) \geq \hat{F}_{n}(t)-F\left(t_{i-1}ight)-\varepsilon\). Theorem 3.18 (Glivenko and Cantelli). Let X,..., Xn be a set of indepen- dent...
-
What does an increase in the balance of accounts payable indicate?
-
Priscilla Nailey manages a fleet of 375 delivery trucks for Jones Corporation. Nailey must decide if the company should outsource the fleet management function. If she outsources to Fleet Management...
-
Tex Milliken, aged 59 and above preservation age retired from his employment as chief accountant of Acme Holdings Limited. He received a golden handshake lump sum of gross $210000, from which $35920...
-
Mia Anabelle of Winnipeg began a new business called Mias Nail Spa. The following transactions resulted: A. Mia invested $16,000 cash from her personal bank account into the salon. B. Bought...
-
Glen Pool Club, Inc., has a $150,000 mortgage liability. The mortgage is payable in monthly installments of $1,543, which include interest computed at an annual rate of 12 percent (1 percent...
-
On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
Why are general capital assets not recorded in governmental funds?
-
In a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment. Discuss the relationship between how these markets...
-
In terms of one that are the new emergency manager for this scenario and one was recently promoted to the position... all of the peers applied for the role too and were not selected.So, what kind of...
-
Eagle Cleaners has been considering the purchase of an industrial dry-cleaning machine. The existing machine is operable for three more years and will have a zero disposal price. The new machine will...
-
Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. Year 1 Amounts billed to clients for services rendered Cash...
-
Compute the future values of your savings after 10 years based on the followings: i) Deposit RM1,200 at the end of each year in a financial institution which pays an interest rate of 12% p.a....
-
Find the area of each shaded region in Problems 1940. (Assume that given measurements are exact, and round approximate answers to the nearest tenth of a square unit.) I I I 30 in. ! I
-
What is a content filter? Where is it placed in the network to gain the best result for the organization?
-
According to some economists, there is a trade-off between higher wages in an industry and employment in that same industry. Do you agree? Briefly explain.
-
How can operating at 100 percent of capacity create unfavorable variances?
-
Why is it important to consider the relationships among cost, quality, and selling prices when establishing standards for direct materials?
-
Why is it important to consider the relationships among cost, quality, and selling prices when establishing standards for direct materials?
-
Determine the probability none of the four diamonds failing inspection. Place your calculation in cell C6. Use the BINOM.DIST function. Reference the value for the number of failures (B6) and the...
-
1)Dividend Yield. BMM Industries pays a dividend of $2 per quarter. The dividend yield on its stock is reported at 4.8 percent. What price is the stock selling at?
-
Hello, Can you please advice which solutions/ concepts to improve supply chain and procurement for the canadian armed forces? Writing a research report for supply chain in the public sector for the...
Study smarter with the SolutionInn App