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AURORKA [14]
3 years ago
7

Jiminy's cricket farm issued a 20-year, 10 percent semiannual bond 4 years ago. the bond currently sells for 97 percent of its f

ace value. the company's tax rate is 38 percent. suppose the book value of the debt issue is $40 million. in addition, the company has a second debt issue on the market, a zero coupon bond with 11 years left to maturity; the book value of this issue is $40 million, and the bonds sell for 52 percent of par. what is the company's total book value of debt?
Business
1 answer:
KiRa [710]3 years ago
3 0

Answer:

The correct answer is $80 million.

Explanation:

According to the scenario, the computation of the given data are as follows:

First debt, Book value = $40 million

Second debt, Book value = $40 million

So, we can calculate the company's total book value by using following formula:

Total book value = First debt, Book value + Second debt, Book value

= $40 million + $40 million

= $80 million

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The managers in Julio's company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when
morpeh [17]

Answer:

Learning.

Explanation:

In this scenario, the managers in Julio's company sponsor monthly brainstorming sessions and reward employees with gift cards and recognition when an out-of-the box idea leads to organizational improvements.

Hence, Julio's company is an example of a learning organization.

A learning organization is one which is typically characterized by creating an enabling environment for growth, training, and development of its employees. This opportunity and incentives help employees to engage in critical and creative thinking, research, and development. Consequently, employees would become more confident, brilliant, intelligent, knowledgeable and professionals in their assigned positions or roles, thus helping the organization to achieve its aim, goals and objectives.

<em>In a nutshell, this ultimately implies that it's very important and necessary that organizations sponsor brainstorming sessions and reward employees awesomely, when an out-of-the box idea leads to organizational improvements.</em>

7 0
3 years ago
If a basket selling price is $13per unit with the variable expense is $10 per unit and the company's monthly fixed expense if $7
TiliK225 [7]

Answer:

26,000 units

Explanation:

The break-even point is calculated by dividing fixed costs by the contribution margin per unit.

Fixed costs are $78,000

Contribution margin per unit = selling costs - variable costs

=$13-$10

Contribution margin per unit=$3

Break-even point = $7800/$3

=26,000 units

6 0
3 years ago
Aubree Blake is a politician who leads campaigns for organic foods in the rural counties of her country. Several farmers in diff
Mariana [72]

Answer:

A. People marketing.

Explanation:

In this scenario, several farmers in different areas have started organic farming because of the popularity of Blake's campaigns; even uneducated people trust the advantages of the campaign because of Blake's involvement in it. This is a people marketing strategy.

8 0
4 years ago
Always accept a job offer before discussing its salary and benefits. true or false.
Harman [31]
False, you should know what they pay you and what benefits they offer. You should also know what you are worth when applying for the job,and give some lead way. But know what the job is, what benefits they have, and how much they are willing to pay( don't be too picky if they will take someone else) , before you take the job.
5 0
3 years ago
Frank &amp; Sons, a 100% equity financed firm, has a beta equal to 1.3. The firm’s stock is currently trading at $25 per share,
ch4aika [34]

Answer:

The required rate of return on the risky projects is 17.40%

Explanation:

The required rate of return on average risky projects of Frank and Sons can be computed using the cost of equity formula below:

Ke=Rf+beta*(Mr-Rf)

Rf is the risk rate of return on government security which is 7%

beta is the sensitivity of the project to market return is 1.3

Mr is the market expected return which is 15%

Ke=7%+1.3*(15%-7%)

Ke=7%+1.3*8%

Ke=7%+10.4%

Ke=17.40%

The required rate of return on the risky projects is 17.40%

5 0
4 years ago
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