Answer: See explanation
Explanation:
a. The company's total book value of debt will be:
= Value of debt + Value of zero coupon bonds
= $70 million + $100 million
= $170 million
b. The market value will be:
= Quoted price × Par value
= ($70 × 1.08) + ($100 × 0.61)
= $75.6 + $61
= $136.6 million
c. The aftertax cost of debt will be:
= (1 - Tax rate) × Pre tax cost of debt
= (1 - 35%) × 5.7%
= 65% × 5.7%
= 3.7%
Answer:
nominal interest rate
Explanation:
Titan State Bank offer of 6% interest is a quoted interest rate. A quoted interest rate is also annual payable rate (APR) and in this case, it is compounded quarterly. Additionally, since this quoted rate does not take into account the inflation rate, it is referred as a Nominal interest rate. However, when that nominal rate of 6% is adjusted for inflation, the rate you earn is the Real interest rate which you calculate using the Fisher equation.
<span>The use of braces explains the meaning of the words preceding the brace. Here Jillian actually mapping her co-worker's decision-making process so the braces probably contain decisions made on some circumstances. The circumstances may be given outside the brace.</span>
<span>Companies especially ones with multinational operations and/or newly acquired businesses, typically have multiple cultures rather than a single culture.
When a business is multinational, they operate in different countries and in each country they operate in they are dealing with different cultures. Because of this, they have different cultures within their organization and operate according to where they are doing business. Successful companies will adapt to each culture so that the business runs like any other business would in their country.
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