Answer:
The present of value of the bonds payable is $ 109,893.83
Explanation:
The present value of the bonds payable is the present of semiannual coupon payments as well as the repayment of face value in year 4.
coupon payments =$100,000*12%*6/12=$6,000
Face value receivable in year 4 is $100,000
Find attached spreadsheet detailing the computation of present value
Answer:
e. The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.
Explanation:
The optimal capital structure involves the combination of both debt and equity where debt is a type of loan which is needed to pay back in some years while the equity represents the ownership of the shareholder in the organization
So here the optimal capital structure represents the maximum stock price that minimizes the weighted average cost of capital
hence, the correct option is d.
Answer:
box
Explanation:
because large box have a lot of space
Answer: Option A
Explanation: In simple words, differentiation strategy refers to the strategy in which a firm tries to develop and introduce a unique product that the customers find different from the other products offered by the competitors.
Thus, the emphasis that the company places on the differentiation works for the benefit of the company as it gives the company an easy competitive advantage.
Hence the correct option is A.
