Answer:
D. Purchase orders
Explanation:
A purchase order is a document legally binding a buyer and a sellerr. It is the official confirmation of an order.
It entails the details of the items the buyer agrees to buy at a certain price, the delivery date and terms of payment for the buyer.
Purchase orders includes details such as purchase order number, the shipping date, billing address, shipping address, quantities and price.
Purchase orders are used when buyers want to purchase goods from a seller, and helps sellers to track payment. It is prepared by the buyers.
Answer:
a) Pre-tax cost of debt is 8.45%
b) After tax cost of debt is 5.07%
Explanation:
a) Given:
Debt issue outstanding = $15.5 million
Semi-annual coupon rate = 0.063 / 2 = 0.0315
Assumed par value (FV) = $1,000
Coupon payment (pmt) = 0.0315 × 1000 = $31.5
Current bond price (PV) = 92% of $1,000 = $920
Time period (nper) = 5 × 2 = 10 periods
Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)
Semi-annual rate = 4.14%
Pmt and FV are negative as they are cash outflows.
YTM = 4.14 × 2 = 8.28%
Effective annual rate =
=
= 0.0845 or 8.45%
b) Tax rate is 40%
After tax cost of debt = Pre tax cost of debt × (1 - 0.4)
= 0.0845 × 0.6
= 0.0507 or 5.07%
Answer:
visible trade in economics, exchange of physically tangible goods between country involving import and export it is distinguished from invisible trade