Answer:
Since the market value equals face value,coupon rate =yield is 75/1000=7.5%
That is 7.5% is before tax cost of floating the bonds
At tax rate of 30%,after tax cost of floating bond =7.5%*(1-30%)=5.25%
However,with a flotation cost of 2%,the before tax cost of flotation is calculated using below formula found in the explanation section.
((75+(1000-980)/25)/(980+1000)*2)=7.66%
Since tax rate remains 30%,the after tax cost of floating the bond with floating cost of 2% is: 7.66%*(1-30%)=5.36%
Explanation:
(Interest payment+((Par value-Net Proceds Value)/number of yr)/(Net Proceds+Par value)/2
Answer:
Contribution margin = $19.45
Explanation:
solution
we get here first total Variable cost that is express as
total Variable cost = Direct materials + Direct labor + Variable manufacturing overhead + Sales commissions + Variable administrative expense .....................1
put here value we get
total Variable cost = 5.6 +4.05 + 2.05 + 1.3 + 0.55
total Variable cost = $13.55
so now we get
Contribution margin that is
Contribution margin = Sales - total Variable cost ...................2
Contribution margin = 33 - 13.55
Contribution margin = $19.45
Answer: The equilibrium price always rises
Explanation:
When the supply shift towards left, the supply curve increases the price of equilibrium and there is decreases in the quantity of the equilibrium. When the demand curve shifts towards right then, the demand curve increasing the price of equilibrium as well as increased the quantity of the equilibrium. This concludes that, the equilibrium price always rises.
Answer: False these are the things that draw in customers if they have good rates they would be happy to tell you.
Answer:
C) Question marks
Explanation:
Based on the scenario being described it can be said that in the context of the BCG matrix the video game units are classified as Question Marks. This term refers to rapidly growing business that take up lots of cash, but still generate very little profit due to their low market shares within the industry, such as the video game units themselves.