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3 years ago

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The Holmes Company's currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue n

ew bonds at par that would provide a similar yield to maturity. If the marginal tax rate is 40%, what is Holmes' after-tax cost of debt?

1 answer:

malfutka [58]3 years ago

6 0

Gghh Rey hhrbbwb Holmes

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In order to sell more goods and/or services, what must a monopoly do?

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<span>In order to sell more goods and/or services, what must a monopoly do? Reduce price and increase output. A monopoly is when a company or a product has control in the industry. The supply or trade of this item or service is limited. For a monopoly to sell even more, they should reduce the price and increase their output because they have no competitors.

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Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her

Nataly_w [17]

Donna independently owns and operates Punkin's Pies, a small business with about 30 employees. She is happy with the size of her business and the average profits it generates. From this scenario, Donna's business can be considered an entrepreneurial venture - False.

<u>Explanation:</u>

A person starting a new business with limited amount of resources and plans is called an Entrepreneur. He is the person who takes responsibilities for the risk and rewards that are associated with that business. The idea of the business must be unique and it should focus only on newer products.

A small business and an entrepreneurial ventures differs from each other although they have similar roles. A small business generally deals with a familiar and an product and services that are already established. The persons of small business usually have risks that are already known. In an entrepreneurial venture, only new products and unknown risks are present.

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3 years ago

Braxton's Cleaning Company stock is selling for $34.75 per share based on a required returmn of 10.4 percent. What is the the ne

mash [69]

Answer: Po = D1/Ke + g

$34.75 = D1/0.104 + 0.039

$34.75 -0.039 = D1/0.104

$34.711 = D1/0.104

D1 = 34.711 x 0.104

D1 = $3.61

Explanation: In this question. there is need to apply the formula for determining the current market price of a common stock. The current market price of a common stock is a function of next dividend capitalised at the appropriate cost of equity plus growth rate. in addition, we need to make the next dividend the subject of the formula.

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3 years ago

Which of the following tasks is likely to be done by the HR department?

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I believe the answer is D. Hiring employees.
Hope that helped.

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4 years ago

Read 2 more answers

Bridgeport Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000

Svetlanka [38]

Answer: $9,479

Explanation:

The number of periods = 10 years * 4 quarters = 40 periods

Interest per quarter = 10%/4 = 2.5%

$168,000 has been deposited. The value of this cash after 10 years is;

= 168,000 ( 1 + 2.5%) ^ 40

= $451,090.72

Out of $1,090,000, the amount remaining is;

= $1,090,000 - 451,090.72

= $638,909.28‬

They need to deposit an annuity per quarter to get to $638,909.28‬.

Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I

638,909.28‬ = Annuity * [(1+0.025)^40 - 1] /0.025

638,909.28 = Annuity * 67.40255

Annuity = 638,909.28/67.40255

= $9,479

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3 years ago