As of December 31, 2019, Armani Company’s financial records show the following items and amounts. Cash $ 11,100 Accounts receivable 10,100 Supplies 7,100 Equipment 6,100 Accounts payable 13,200 Common stock 15,100 Retained earnings, Dec. 31, 2018 4,100 Retained earnings, Dec. 31, 2019 6,100 Dividends 14,100 Consulting revenue 35,200 Rental revenue 24,200 Salaries expense 21,100 Rent expense 13,100 Selling and administrative expenses 9,100 Required: Prepare the 2019 year-end income statement for Armani Company.

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

Which of the following is not an example of one of the four mail advantages of prices on a free market economy

Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above