Answer:
$508.63
Explanation:
For this question, we use the Present value formula that is reflected in the attached spreadsheet. Kindly find it below:
Provided that
Given that,
Future value = $1,000
Rate of interest = 14%
NPER = 15 years
PMT = $1,000 × 6% = $60
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $508.63
Answer:
13.86%
Explanation:
Calculation to determine the flotation-adjusted (net) cost of its new common stock
Using this formula
Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g
Let plug in the formula
Cost of new common stock(re)= [$1.36 / 33.35 (1 – 0.065)]+0.094
Cost of new common stock(re)= [$1.36 / 33.35 (0.935)]+0.094
Cost of new common stock(re)= [$1.36/31.182)+0.094
Cost of new common stock(re)=0.04361+0.094
Cost of new common stock(re)=0.1376*100
Cost of new common stock(re)=13.76%
Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%
A note is transacted through a single lender but it is similar to a bond payable.
<h3>What are bonds?</h3>
Bonds are the trading securities in the stock market which provide a constant amount of interest to the holder of bonds.
A note is a kind of debt where one party, that is, the payer agrees to pay back against the amount taken from the other party, that is, the lender. In the case of bonds, they are issued by companies to a large group of investors, called bond investors. Both are debts but contrasted on the basis of a number of lenders.
Therefore, the bond payable is similar to the note but differentiated due to the involvement of only one lender.
Learn more about the bonds in the related link:
brainly.com/question/14064867
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