Drogo, inc., is trying to determine its cost of debt. the firm has a debt issue outstanding with 23 years to maturity that is quoted at 97 percent of face value. the issue makes semiannual payments and has an embedded cost of 5 percent annually. what is the company’s pretax cost of debt? if the tax rate is 35 percent, what is the aftertax cost of debt? if the tax rate is 35 percent, what is the aftertax cost of debt?

Expert computers was started in 2018. the company experienced the following accounting events during its first year of operation: started business when it acquired $40,000 cash from the issue of common stock. purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. paid off one-half of the accounts payable balance within the discount period. sold merchandise on account for $28,000. credit terms were 1/20, n/30. the merchandise had cost expert computers $16,000. collected cash from the account receivable within the discount period. paid $2,100 cash for operating expenses. paid the balance due on accounts payable. the payment was not made within the discount period. required record the events in a horizontal statements model below. in the cash flows column, use the letters oa to designate operating activity, ia for investing activity, fa for financing activity, or nc for net change in cash. if the account is not affected by the event, leave the cell blank. the first event is recorded as an example. what is the amount of gross margin for the period? what is the net income for the period?