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Andreas93 [3]
3 years ago
5

Hi Tech Products has 35,000 bonds outstanding that are currently quoted at 102.3. The bonds mature in 11 years and carry a 9 per

cent annual coupon. What is the firm's aftertax cost of debt if the applicable tax rate is 35 percent?
Business
1 answer:
Xelga [282]3 years ago
6 0

Answer:

aftertax cost of debt =5.63%

Explanation:

fisrt we need to know the formula for the yield to maturity

Yield to maturity (YTM)

YTM= ( I+(F-P)/n ) / ( 0.6P +0.4F)

YTM=  (9 + ( 100-102.3) / 11 ) / (0.6*102.3 + 0.4*100)

YTM= 0.0867

YTM= 8.67%

after taxes we have...

8.67% (1-0.35%)

=0.0563

=5.63%

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Pedro wants to open his own business. To get a loan for the business, the bank needs him to give them some collateral. What is a
elixir [45]

Answer:

see below

Explanation:

Collateral refers to a valuable asset that a borrower offers to a lending institution to guarantee that they will repay the requested loan. Usually, collateral has a higher value than the loan amount. Collateral reduces the risk to the lender, which translates to lower interest rates.

Examples of assets that Pedro can use as collateral include.

1. Motor Vehicles

2. Properties such as land and Buildings

3. Machinery and equipment

4. Inventory

6 0
3 years ago
Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in
e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game  that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

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8 0
2 years ago
Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock
Jlenok [28]

Answer:

(a) Decrease in accounts receivable

(g) Depreciation expense

Explanation:

Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.

It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted

Based on the above explanation, the items which are to be added in the operating activities are

(a) Decrease in account receivable

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8 0
3 years ago
_____ is the element in the promotional mix of a marketing plan that evaluates the public’s attitudes, identifies issues that ma
kotykmax [81]

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3 0
3 years ago
Can a manager yell at employees in front of customers answers
Setler [38]

Can you yell at your kids infront of other people. The answer is yes :)

5 0
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