Gillespie enterprises inc. issued $26 million in new common stock.
b. cal state university received $20,000,000 cash for 80,000 five-game-season football tickets. none of the games have been played.
c. cal state played the first football game referred to in (b).
d. hall construction company signed a contract with a customer for the construction of a new $500,000 warehouse. at the signing, hall received a check for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. answer from hall's standpoint.
e. a popular snowboarding magazine company received a total of $1,800 today from subscribers. the subscriptions begin in the next fiscal year. answer from the magazine company's standpoint. f. t-mobile sold a $100 cell phone plan for service in september to a customer who charged the sale on his credit card. answer from the standpoint of t-mobile.

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

The era of venture capitalists doling out large sums of money to startups is a. just beginning b. on the rise c. over d. fading