Answer:
7.52%
Explanation:
First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:
=rate(nper,pmt,-pv,fv)
the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times
pmt is the amount of annual coupon payment which is $106
pv is the current price of the bond at $860
fv is the face value of the bond at $1000
=rate(20,106,-860,1000)=12.54%
The yield to maturity on the new issue is 12.54% as well
after-tax cost of debt=pretax cost of debt*(1-t)
pretax cost of debt is yield to maturity of 12.54%
t is the tax rate of 40% or 0.4
after-tax cost of debt=12.54%
*(1-0.4)=7.52%
Answer:
price earning ratio = 2
Explanation:
given data
Book value = $40 per share
Par value = $12 per share
Dividends = $5 per share
Dividend payout ratio = 20 %
Dividend yield ratio = 10 %
solution
first we get here market price per share by dividend yield ratio that is express as
dividend yield ratio = Dividends per share ÷ market price per share ........................1
put here value we get
market price per share = 
market price per share = $50
and
now we get earning per share by dividend payout ratio that is express as
dividend payout ratio = dividend per share ÷ earning per share .................................2
put here value we get
earning per share = 
earning per share = $25
so now we get here price earning ratio that is
price earning ratio = market price per share ÷ earning per share ..........................3
put here value we get
price earning ratio = 
price earning ratio = 2
Answer: A higher interest rate.
Explanation: Most savings accounts do not have a high interest rate at the moment.
Answer: The supervisor should compare the register transactions with the cash receipts report to make sure that both are correct.
Explanation:
The cash register shows the actual amount of money that is collected by the business during the day and the cash receipts journal records the cash collected.
There is therefore a need to ensure that these two tally up as a control method. The supervisors should therefore check for this and if they find that these two are not the same, it means that there is an error somewhere that needs to be rectified.
Answer:
b. it expects that this will increase sales and profits
Explanation:
