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Need answer ASAP!!! Dont have to explain too much once the correct answer is provided. Thank you for ALL your help! 22) 4) Last year,
Need answer ASAP!!! Dont have to explain too much once the correct answer is provided.
Thank you for ALL your help!
22)
4)
Last year, Neptune Corporation had sales of $877,000 and paid taxes of $111,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $62,000 in interest expense. In addition, the firm incurred Variable Costs and Fixed Costs of $271,000 and $115,000 respectively. If sales increase by 5%, what should be the percentage change in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%, FOR EXAMPLE, ENTER 7.70. Neptune Corporation's bonds have 20 years to maturity with a coupon rate of 10%. Interest is paid semi-annually. The bonds sold at par value, but the firm paid flotation costs amounting to 5% of par value. The firm has a marginal tax rate of 21%. What is the firm's after-tax cost of debt for these bonds? O 10.61% O 5.98% 08.38% O 4.99% O 5.85%Step by Step Solution
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