Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
C 5.500 (100 x 11%/2)
time 60 (30 years x 2 payment per year)
rate <em>0.052787474</em>
PV $99.4338
PV of the maturity
Maturity 100.00
time 60.00
rate <em>0.052787474</em>
PV 4.57
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity $4.5662 = $104.0000
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474 x 2 = 0.105574947
The cost of debt for the firm is 10.56%
Answer:
$36.65
Explanation:
D1 = D*(1+g)
D1 = 1.8*(1+0.12)
D1 = 1.8(1.12)
D1 = $2.016
Price of stock P = D1 / (re - g)
Price of stock P = $2.016 / (0.175 - 0.12)
Price of stock P = $2.016 / 0.055
Price of stock P = $36.654545
Price of stock P = $36.65
So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.
Answer:
consumer income rises; pizza dough decreases in price
⇒ output increases; price uncertain
- higher consumer income results in higher prices
- but decrease in the price of inputs results in lower prices
- both result in higher output
consumer income falls; pizza dough decreases in price
⇒ price decreases; output uncertain
- both result in lower prices
- falling consumer income result in lower output
- decrease in the price of inputs results in higher output
consumer income falls; cheese increases in price
⇒ output decreases; price uncertain
- both lower output
- falling consumer income decreases price
- increase in price of inputs increases price
consumer income rises; cheese increases in price
⇒ price increases; output uncertain
- both increase price
- rising consumer income increase output
- increase in price of inputs decreases output
The authoritarian Leadership style would have been more effective in this position.
What is Authoritarian Leadership?
- An authoritarian leadership style is shown when a leader prescribes policies and procedures, determines what goals must be met, and commands and controls all actions with little meaningful input from subordinates.
- Such a leader has complete control over the team, allowing for little individuality inside the group.
- The group is supposed to accomplish the work under very strict supervision, while the leader has limitless authority.
- The replies of subordinates following directives are either penalized or rewarded.
Assume that hiring a manager of operations was a good idea.
Therefore, the authoritarian Leadership style would have been more effective in this position.
Know more about authoritarian Leadership here:
brainly.com/question/26909351
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Answer:
$221,100
Explanation:
Investing activities: It tracks activities that include buying and selling long-term assets. The buying is a cash outflow whereas the selling is a cash inflow
The computation is shown below
Cash flow from Investing activities
Add: Sale of equipment $51,300 ($65,300 - $14,000)
Less: Purchase value of a new truck - $89,000
Add: Sale of land $198,000
Add: Sale of long term investments $60,800
Net Cash flow from Investing activities $221,100