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1 year ago

How to obtain finacial literarcy?

Business

1 answer:

Leno4ka [110]1 year ago

4 0

Answer:

Start keeping a budget

Explanation:

All of the financial guidance from experts won’t mean much if you don’t know where your money is going every month. Start tracking your spending and set up a budget using a simple spreadsheet or website apps.

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Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe

katrin [286]

Answer:

2.9652%

Explanation:

to determine the cost of debt we must use the FMV of the bonds plus the YTM:

first bond:

FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual

second bond:

FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual

total debt = $3,924,000 + $7,505,000 = $11,429,000

weighted average after tax cost of debt:

{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%

6 0

4 years ago

Global Traders is offering 130,000 shares of stock to the public in a general cash offer. The offer price is $38 a share and the

Stella [2.4K]

Answer:

correct option is b. $3,679,800

Explanation:

given data

offering = 130,000 shares

offer price = $38

underwriter spread = 8 percent

administrative costs = $865,000

solution

we get here Net proceeds from sale that is express as

Net proceeds = Gross proceeds - Underwriter's spread - Administrative costs ....................1

here Gross proceeds from sale is = offering share × offer price

Gross proceeds from sale is = 130000 × $38

Gross proceeds from sale is = $49,40,000

and Underwriter's spread will be offering share × offer price × underwriter spread %

Underwriter's spread = $49,40,000 × 8%

Underwriter's spread = $3,95,200

so Net proceeds will be

Net proceeds = $49,40,000 - $3,95,200 - $865,000

Net proceeds = $3,679,800

so correct option is b. $3,679,800

7 0

3 years ago

Haley romeros had just been appointed vice president of the rocky mountain region of the bank services corporation (bsc). the co

cluponka [151]

computerized database

7 0

3 years ago

I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is

neonofarm [45]

Answer:

a) must accept market price for its physical capital inputs.

Explanation:

The price of gold in the commodity market is being influenced by market speculation. Market speculation implies investors are trying to profit from the changing prices of gold. When the market is active, the price of gold will be moving up and down depending on demand.

The current prices are high is a motivation to sell. For I'maGoldMiner to profit from the current high prices, it must continue with production. In the event the prices of physical capital inputs change, the company must accept the new prices. The high selling prices will assist the company in absorbing any changes input costs. That way, the company will maximize on the current high prices.

3 0

3 years ago

During negotiations, which of the following should you do? Focus on meeting your needs. Develop a rapport and focus on the obsta

sashaice [31]

Answer:

<u>Set objectives.</u>

Explanation:

For a negotiation to be effective, it is necessary for the negotiator to follow some important steps in the process that will help him acquire skills that will add to the success of the negotiation.

The first step, therefore, is the preparation of the negotiation, which will be the development of the plan and the definition of the negotiation objectives. Defining the objectives is to know and know what and with whom you are negotiating, knowing the other party and what you want, will be essential to achieve a positive result in a negotiation.

5 0

3 years ago