Answer: (a) 6%
(b) 10.61%
(c) Yes
Explanation:
a) After tax cost of debt = Yield (1- tax)
= 8 ( 1 - 0.25)
= 8 × 0.75
= 6%
b) 
= 0.1061 or 10.61%
Note: Cost of preferred stock is not tax deductible
c),Yes the treasurer is correct ,The cost of debt is 5% less than cost of preferred stock [10.61 - 6 = 4.61%]
Answer:
The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Explanation:
Solution
For us fully maximize profit under two part price It should gives that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.
Now,
marginal cost= MC = 1 and P = 100 - 25Q.
Thus,
P = MC => 100 - 25Q = 1 => Q = 2
Then,
The Consumer surplus is the above area Price of line which is (iP = 1) and below is the curve of demand
Now,
P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height
= (1/2)*(100 - 1)*2 = 99
Therefore, Fixed fee or The Lump Sum fee = 99
However, the Optimal two part pricing is denoted by:
The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Answer: Holders of convertible bonds can choose how many shares of stock to receive at conversion
Explanation:
A convertible bond is a debt security that yields the payment of interest, but can also be converted into equity shares or common stock that are predetermined.
The option that holders of convertible bonds can choose how many shares of stock to receive at conversion is wrong. This is because the number I shares that will be eventually converted will already have been fixed.
Answer:
One of the key aspects of choosing the best career is by thinking about yourself. Many people in your life can tell you what you should do, or what they think you’d be good at, but the only person who truly knows which career is best, is yourself.
Start by thinking about your passions and what you’re interested in. If you have a love for writing, a career in construction, for example, may not be the best fit. Instead, you’d look at more creative fields such as journalism, copywriting or even creative writing. Knowing and discovering what you enjoy and feel passionate about will give you a strong start to discovering a career path for you.
I hope this will help you,
God blessed you
Answer:
Find the break point. (Round your answer to the nearest whole unit.)
122222 fastener
Explanation:
Cost 1= 1100+0,007x
Cost 2=1650+0,0025x
cost1=cost2
1100+0,007x=1650+0,0025x
0,0045x=650
x=122222 fastener
Cost 1=1100+0,007*122222
Cost 1=1955,55
Cost 2=1650*0,0025*122222
Cost 2=1955,55
