Answer:
$74,880
Explanation:
The computation of the amount of interest Cullumber must pay the bondholders is shown below:
= Face value of the bond × interest rate
where,
Face value of the bond is $1,248,000
And the interest rate is 6%
So, the amount of interest paid is
= $1,248,000 × 6%
= $74,880
We simply multiplied the face value of the bond with the interest rate so that the amount of interest expense could come
Answer:
Explanation:
Low involvement. The major reason for the advertisement is not so that there will be high involvement buyer, with information about the product (beer) to be produced deeply to form strong attitudes, but the advertisement is basically for entertainment and also so that good feeling can be associated about the advert and product (beer). In fact the major disadvantage about the use of humour in advert is that people can remember the advert and forget the brand or product been advertised.
Using the scenarios in case exhibit 9, Leverage will always lead to an increase in the total rate of return in the equity because leverage will be increasing the interest tax Shield due to which it can be seen that the total market value of the company has increased with a higher amount of debt capital.
The cost of capital is generally decreasing with a higher amount of leverage as there will be benefits associated with interest tax shield.
It can be noticed that when a high amount of leverage is used by the company, it is eventually leading to a higher amount of market value for the company as well so higher leverage is leading to a higher amount of market value for the company so leverage is directly related to increases in the market value as high amount of leverage will be increasing the total market value.
Leverage is an investment strategy that uses borrowed money (specifically, the use of various financial instruments or borrowed capital) to increase the potential return on investment. Leverage can also refer to the amount of debt a company uses to fund its assets.
Leverage is the amount of debt a company has in its debt-equity combination (capital structure). A company with more debt than the industry average is considered highly leveraged. The definition of leverage is the act of leverage or force to influence a person, event, or thing. An example of a lever is the action of a seesaw. An example of leverage is being the only person running for class president. noun.
Learn more about Leverage here
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Its a pretty hard question but still u can someone else
You have access to online and Mobile banking ATM’s and the use of debit card.
