The goodsmith charitable foundation, which is tax-exempt, issued debt last year at 8 percent to finance a new playground facility in los angeles. this year the cost of debt is 20% higher; that is, firms that paid 10 percent for debt last year will be paying 12 percent this year.

a. if the goodsmith foundation borrowed money this year, what would the after tax cost of debt be, based on its cost last year and the 20% increase?
b. if the receipts of the foundation were found to be taxable by the irs (at a rate of 35% because of the involvement in political activities), what would the aftertax cost of the debt be?

3. now assume that carnival booked lady antebellum in december 2016 to perform on the june 2017 western caribbean cruise. further assume that carnival pays lady antebellum its entire performance fee of $52,000 on december 28, 2016, for the june 2017 cruise. what journal entry will carnival make on december 28, 2016, for its payment to lady antebellum?

If you miss two payments on a credit card what is generally the penalty

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.