1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
harina [27]
3 years ago
15

Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a n

ew oilfield services operation in the Permian Basin. This project would require an outlay of $50 million.
Suppose that PUMP hires Moody’s to assess the company’s credit quality if it were to issue the bonds. Moody’s advises PUMP that it would rate its bonds as Baa.

Managers at PUMP consider issuing a 10-year bond. Currently, the yield on a U.S. Treasury bond with about 10 years to maturity is 1.46%.

Estimate the required rate of return for the bond that PUMP managers are considering.

a. 1.46%
b. 3.86%
c. 5.40%
d. 8.95%
e. 1.93%
Business
1 answer:
AVprozaik [17]3 years ago
3 0

Answer:

Option A is correct.

The required rate of return for the bond that PUMP managers are considering is <u>1.46%</u>

Explanation:

Required rate of return for the bond that PUMP managers are considering is 1.46%.  Because, currently, the yield on a U.S. Treasury bond with about 10 years to maturity is 1.46%. same type of bond yielding is 1.46%.

You might be interested in
An effective price ceiling is imposed in a market. This leads to the development of an illegal black market for the product. How
horsena [70]

Answer:

The price on the black market tends to be higher.

Explanation:

When price ceilings are placed in legal markets, buyers are able to get goods and services at lower prices. But sellers may not be willing to sell unlimited supply of goods at the low price. This could lead to artificial scarcity, and formation of black markets.

The main aim of black markets is for suppliers to maximise profits, so a supplier is able to sell his goods at an amount above the price ceiling set in the legal market.

Also black markets are characterised by practices such as tax evasion, which are beneficial to the suppliers.

6 0
3 years ago
The salary at the new job is a(n). The benefits at the job are a(n). The job’s location is a(n). The potential for job satisfa
Inessa [10]

There are different kinds of employment benefits. The answers to the questions are;

  • The salary at the new job is an advantage
  • The benefits at the job are an advantage
  • The job's location is an advantage
  • The potential for job satisfaction is an advantage

There are different benefits from finding a good job. They include insurance in both medical, life, dental etc., vacation pay, holiday pay, maternity leave, bonuses etc.

Getting a good Job that has a good pay and very close to one's residence  is very  important as it will reduce your cost of spending.

See full question below

Keisha has received an offer for a job that pays a higher salary than her current job. It also offers health insurance for all the members of family. The new job is a distance from her home and will require a long commute, which will take her away from her family for many hours of the day. In addition, it provides the promise of advancement and future opportunities at that company. The salary at the new job is a(n) . The benefits at the job are a(n) . The job’s location is a(n) . The potential for job satisfaction is a(n) .

Learn more about Employment from

brainly.com/question/25609681

8 0
3 years ago
Select cost information for Seacrest Enterprises is as follows: 1,000 units of output 5,000 units of output Total Cost/Unit Tota
gayaneshka [121]

Answer:

c. Utilities expense is a mixed cost and rent expense is a fixed cost.

Explanation:

Seacrest Enterprises

                                        1000 units                       5000 Units

                  Total Cost     Total Cost /Unit     Total Cost       Total Cost/Unit

Direct materials  $5,000               $5.00        $25,000          $5.00

Utilities expense  $1,000                 $1.0 0        $3,750            $0.75

Rent expense        $4,000                    $4.00         $4,000            $0.80

Direct Materials show variable Costs

Utilities expense show mixed costs

Rent Expense show fixed costs

The correct answer is

c. Utilities expense is a mixed cost and rent expense is a fixed cost.

4 0
3 years ago
They could increase Marco's motivation by:
AleksandrR [38]

Answer:

B

Explanation:

moneys always good motivation

4 0
3 years ago
The stock of Mulberry Corporation is owned by Archana (60%) and Anar (40%), who are mother and daughter. Pursuant to a plan of c
Phoenix [80]

Answer:

There is loss of $109,120

Explanation:

Lossrecognized=Marketvalue−Purchasevalue

=$1773200-1364000

Therefore, loss recognized by “M” Corporation is $409,200

Determine the gain or loss of A:

LossbyA=Purchasevalue−Liability−ActualbasisofM

=[($1364000-$1091200)×40%]−$218240

=$109120−$218240

=($109,120)  loss

​

4 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following best describes credit sales? Multiple Choice Cash sales to customers that are new to the company. Sales t
    13·2 answers
  • Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. a
    6·1 answer
  • Five reasons why people travel
    6·2 answers
  • The Crane Company issued $250,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each
    8·1 answer
  • Crane Company had these transactions during the current period. June 12 Issued 87,000 shares of $1 par value common stock for ca
    13·1 answer
  • Lenore, a single California taxpayer, has taxable income before capital gains of $78,000 and a long-term capital gain of $5,000
    8·1 answer
  • When working with text boxes and shapes, which tab contains settings for applying shadows and 3-D rotation to objects?
    7·1 answer
  • Assume BarnesandNoble.com has 289 business math texts in inventory. During one month, the online bookstore ordered and received
    10·1 answer
  • Which form of market segmentation is Coca Cola using when they look at the values, attitudes, and lifestyle of their target mark
    14·2 answers
  • Contracts are typically private agreements in that they bind the two parties and no one else. Thus, parties not in privity of co
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!