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shutvik [7]
4 years ago
6

Andrew Industries is contemplating issuing a 30​-year bond with a coupon rate of 7.00 % ​(annual coupon​ payments) and a face va

lue of $ 1 comma 000. Andrew believes it can get a rating of A from Standard​ & Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently 6.50 %​, and yields on​ BBB-rated bonds are 6.90 %.A. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue?
B. What will be the price of the bond if it is​ downgraded?
Business
1 answer:
erik [133]4 years ago
8 0
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Costly Corporation is considering a new preferred stock issue. The preferred would have a par value of $1000 with an annual divi
shutvik [7]

Answer:

28.63%

Explanation:

The computation of the cost of preferred stock is shown below:

Cost of the preferred stock = Dividend ÷ Price of the stock

where,

Dividend is

= $1,000 × $15%

= $150

And, the price of the stock is

= Market value of the stock - flotation cost

= $576 - $52

= $524

So, the cost of preferred stock is

= $150 ÷ $524

= 28.63%

We ignored the marginal tax rate i.e 40%

3 0
3 years ago
A price floor is Group of answer choices often imposed when sellers of a good are successful in their attempts to convince the g
Natasha2012 [34]

Answer: a legal minimum on the price at which a good can be sold.

Explanation:

A price floor is the lowest price the government approves for a product sales, in other words the product cannot be sold below the price floor. The price floor is set to protect the sellers from running at a loss in case the market price of a product is less than the expenses made in producing/buying that product.

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3 years ago
Conscious marketing: Group of answer choices is often grafted on to traditional business model, usually as a separate department
Karo-lina-s [1.5K]

Answer:

recognizes that business is a subset of society, and that society is a subset of the planet.

Explanation:

Conscious marketing recognizes that business is a subset of society, and that society is a subset of the planet.

This ultimately implies that, conscious marketing encourages or jeer various organizations to engage in social responsibilities such as ethical and social activities.

Basically, an organization that engage in conscious marketing is very much concerned with having a sustainable and long-term brand’s performance by being authentic, ethical, transparent, and honest with its customers, in order to create a win-win relationships for both parties. The conscious marketing involves the following stakeholders;

1. Employees.

2. Society.

3. Consumers.

4. Market place.

Since conscious marketing recognizes that business is a subset of society, and that society is a subset of the planet, it makes organization to have conscience in serving all their stakeholders rather than just focusing on making sales and profits.

<em>Generally, when an organization engage in conscious marketing it helps them to improve their brand equity and thus, increasing their sales and profits. </em>

8 0
4 years ago
Jenna, a 10-year-old, has a mental structure, or schema, about what typically happens when you go out to eat in a restaurant. he
lakkis [162]
This kind of mental structure is called a script.
The same term is used in the movie and theater industry - actors receive a script which will tell them exactly what they need to do. The same thing goes here - Jenna knows that the people working in the restaurant will behave as if they had a script to follow.
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4 years ago
What is sexual intercours and how it happens <br>​
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Answer:

YOU DO LE SECKS

Explanation:

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