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
noname [10]
3 years ago
13

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 Caa.

Managers at PUMP consider issuing a 20-year bond. Currently, the yield on a U.S. Treasury bond with about 20 years to maturity is 1.81%.

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

a. 9.30%
b. 12.44%
c. 18.71%
d. 2.28%
e. 1.81%
Business
1 answer:
dexar [7]3 years ago
8 0

Answer:

b. 12.44%

Explanation:

The Permian Underground Machines & Pipes Co. (PUMP) is considering to pursue a new oilfield services operation which will require an investment of $50 million. The company requires to borrow funds by issuance of bonds with 20 years of maturity. The moody's has assessed the company project to be risky and has rated it as Caa. The Caa rating is considered to be vulnerable and ability for the project to meet its financial obligations depends on its favorable business outcome and good economic conditions.  

You might be interested in
Which of the following is an example of consumer problem behavior?
Dahasolnce [82]

Answer:

E. Johnathan eats alone because he feels guilty about his binge-eating habits and gets worked up when waiters attend to him.

Explanation:

Johnathan is not happy with his habit of binging food.This made him to act like seating alone while eating and he gets worked up when he is attended by waiters

7 0
3 years ago
Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringin
wariber [46]

Answer:

False

Explanation:

During a sequential product development, each department works to complete its stage before the process continues to the next department.

A team-based new product development approach is used to develop products faster and to be able to sell them faster. This approach does not require that each department finishes its stage before passing to the next one. Instead, several departments work together simultaneously.

6 0
3 years ago
The operator of the local mall wants to find out how many of the mall's employees make purchases in the food court when they are
schepotkina [342]
The correct answer is "to survey <span>every 30th employee entering each mall entrance for one week".

Why is it considered to be the best method to get a random sample of the employees? The 30th employee, who enters the mall for the week is a random element and may work at different locations in the mall, which gives you a better random sample for the survey.</span>
3 0
3 years ago
what is the best definition of the capability of a process? select one: a. how well the input of a process satisfies the custome
anzhelika [568]

Correct option is A. The best definition of the capability of a process is how well the input of a process satisfies the customer of the process.

<h3>What is the purpose of process capability analysis?</h3>

To determine how well a certain process complies with a set of specification restrictions, a set of techniques called process capability analysis is utilized. In other words, it assesses the effectiveness of a procedure.

In actuality, it compares the distribution of sample values—representing the output of the process—against the specification limits, or the upper and lower bounds of what we aim to achieve. It may also be compared to a specification target.

Process capacity indices are frequently used to describe a process's capabilities. Depending on your analytical needs, you could calculate one or more of the several process capability indices. However, in order to compute any process capacity indices, you must first presume that your process is stable.

To learn more about process capability analysis from given link

brainly.com/question/20396505

#SPJ4

4 0
1 year ago
The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harol
Norma-Jean [14]

Answer:

i would say b , but im not 100% sure, good luck!

Explanation:

4 0
4 years ago
Other questions:
  • If you received a constant annual rate of return of 7% on an investment of $10,000, how many years will it take before you have
    10·1 answer
  • Ian admits to and corrects bookkeeping mistakes right away. Shin Lee reported a conflict-of-interest issue to her supervisor imm
    9·1 answer
  • Mr. musselman is the head coach of the high school football team. he notices that, after learning the names of the players on th
    10·1 answer
  • Which one of the following statements is correct? Question 19 options: A longer payback period is preferred over a shorter payba
    15·1 answer
  • Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
    11·1 answer
  • What does it mean when your tax return is being processed?
    8·1 answer
  • The two types of distribution channels are direct and ________________.
    12·2 answers
  • The sales volume variance is the difference between the: A. static budget (based on planned volume) and actual revenue or cost.
    8·1 answer
  • Hollister Company amended its defined benefit pension plan at the beginning of 2020 and recognized prior service cost of $1,700,
    13·1 answer
  • Match the tasis with the professionals who do them
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!