Answer:
10.412%
Explanation:
The computation of the average cost of equity of the firm is shown below;
The Cost of equity as per CAPM is
= risk free rate + beta × (market rate - risk free rate)
= 4.2 + 1.34 × (12.8 - 4.2)
= 15.724%
Now the Cost of equity as per growth model is
= (D1 ÷ Current price) +Growth rate
= [0.45 ÷ 15] + 0.021
= 5.1%
Now the Average Cost of equity is
= (15.724 + 5.1) ÷ 2 2
= 10.412%
Answer: B
I think we can straight away get rid of answer choice c. From there, we can choose from either choice a or b. For repeatedly expressed, he hasn't been there enough times to prove it is repeatedly expressed, so I believe the main reason why he has a positive attitude is favorable outcome that he will receive the same treatment again.
Explanation:
They use a minimum amount of resources for the amount of outputs produced.
Answer:
explaining the stability and control aspects of the StreetCarver in its advertising messages
Explanation:
Based on the scenario being described within the question it can be said that In this case, it will most likely focus on explaining the stability and control aspects of the StreetCarver in its advertising messages. That is because these aspects are the highlights of what make the StreetCarver unique and better than the other options in the market, therefore these aspects are what will place the StreetCarver in the consideration set of potential skateboard buyers.
Answer:
a)$103.309 million initially b)$83.309 million c)240070 bonds more
Here is the complete question:
A firm with an A rating plans to issue one million units of a 10 year-4% bond with face value $100. After the financial crisis this firm is downgraded to a B rating. The yield curve increases 0.2% per year. The yield for year 1 is y1=1%, for year 2 is y2=1.2%, y3=1.4% and so on and y10=2.8%. The default spreads are given in the table below.
(a) What is the initial amount (before downgrading) the firm wants to raise?
(b) How much can this now B rated firm raise?
(c) If the firm wants to raise the planned amount, how many more bonds does it issue?
Rating Default spread
AAA 0.20%
AA 0.40%
A+ 0.60%
A 0.80%
A- 1.00%
BBB 1.50%
BB+ 2.00%
BB 2.50%
B+ 3.00%
B 3.50%
B- 4.50%
CCC 8.00%
CC 10.00%
C 12.00%
D 20.00%
Explanation: The explanation is found in the attachment
