Cost of issuing the commercial paper. Carmelo, Inc, will need P4 million over the next year to finance its short-term requirements The company is considering financing alternatives - bank financing and the sale of commercial paper Tarlac Union Bank is willing to loan Carmelo the necessary funds providing company maintains a 20% compensating balance. The effective cost of the bank loan, considering the compensating balance requirement , 10.4 percent on a . Under the other alternative Camelo would sell P4 million of 90-day maturity commercial paper every 3 months . The commercial paper will carry a rate of 7.75 %. The interest rate is expected to remain at this level throughout the year . The commercial paper dealer's fee to place the issue would be a one -time charge of 1/8% . The commercial paper dealer will require Carmelo to establish a P400,000 compensating balance Management prefers the flexibility of bank financing However if the cost of bank financing should exceed the cost of the commercial paper by more than percent , Carmelo plans to issue the commercial paperi

Which stroke of the four-stroke cycle is shown in the above figure? a. power b. compression c. exhaust d. intake

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?