The board of directors of Testa Incorporated has decided that they would like to declare a $400,000 cash dividend at some point

Answer:

A. 3.32 years

B. 4.21 years

C. No payback period

Explanation:

The payback period calculates the amount of time it takes the cumulative cash flows to equal the amount invested .

The attached tables, calculates how the pay back periods are calculated.

For the project with an investment of $3900, the payback period = 3 years + 375 / 1175 Years = 3.32 years

For the project with an investment of $4950, the payback period = 4 years +250 / 1175 Years = 4.21 years

For the project with an investment of $10,400, there is no payback.

Answer:

True.

Explanation:

Universal Container has implemented a large service cloud roll out almost 3 months ago at their national call center successfully, but agents are having trouble to open the cases for united automotive whenever they try to create a new case. There were more than 15000 open cases but the problem appears   again.

Answer:

Find the answers below

Explanation:

The total book value of the debt is the sum of the two bonds book values

total book value=$60 million+$35 million=$95 million

Total market value of bonds is the sum of the two bonds market values

total market values=$60 million*91%+$35 million*51%

                                =$54.6  million+$17.85  million=$72.45  million

After tax cost of debt =pretax cost of debt*(1-t) where t is the tax rate of 38% or 0.38

For the first bond:

=rate(nper,pmt,-pv,fv)

nper is the number of interest the bonds would pay from now on,i.e (15-4)*2=22

pmt is the semiannual interest payment,which is:$60 million*10%/2=$3 million

pv is the market value of $54.6 million

fv is the book value of $60 million

=rate(22,3,-54.6,60)=5.73%

5.73%  is the semiannual rate ,where 11.46% is the annual rate

after tax cost of debt=11.46%*(1-0.38)=7.11%

the second bond:

nper is 11 (11 years left to maturity)

pmt is nil since it is a zero coupon bond

pv is $17.85 million

fv is $35 million

=rate(11,0,-17.85,35)=6.31%

after tax cost of debt=6.31% *(1-0.38)=3.91%

Answer:

cash A/C•••••••••••Dr.

To,Rai´s A/C

Answer:

$4,600

Explanation:

Given that,

Tax return preparation fee = $600

Moving expenses = $2,000

Investment expenses = $500

Expenses associated with rental property = $1,500

Interest expense associated with loan to finance tax-exempt bonds = $400

Total amount that Cory can deduct:

= Tax return preparation fee + Moving expenses + Investment Expenses + Expenses Associated with rental Property

= $600 + $2,000 + $500 + $1,500

= $4,600