1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hodyreva [135]
3 years ago
9

The cost of debt capital for a firm . a. is equal to the current yield (not YTM) on the firm’s outstanding bonds b. can be calcu

lated by estimating the beta of the firm’s equity and then using the SML c. can be calculated by looking at the coupon rates on existing bonds of similar risk d. can be estimated even if the firm’s bonds are not publicly traded, by looking at the yield to maturity on bonds outstanding from peer group firms with similar ratings and maturity.
Business
1 answer:
topjm [15]3 years ago
3 0

Answer:

d. can be estimated even if the firm’s bonds are not publicly traded, by looking at the yield to maturity on bonds outstanding from peer group firms with similar ratings and maturity

Explanation:

The cost of Debt for a firm is estimated even if the firm's bonds are not publicly traded, by looking at the yield on bonds outstanding from peer group firms with similar ratings and maturity.

You might be interested in
Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal conta
Nuetrik [128]

Answer: Please refer to Explanation.

Explanation:

1. Honesty.

State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".

2. Persistence.

You can be persistent on the phone if you detect deceit in the secretary's tone.

For instance,

" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".

If it still doesn't work, ask for a convenient time you can call back.

4 0
3 years ago
R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is runni
Nata [24]

Answer:

a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?

The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.

Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.

b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?

If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.

c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?

It is useless, and he should know it. The only implication is that this will help him realize his low IQ.

6 0
3 years ago
Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $
nikitadnepr [17]

Answer: Sell before assembly, the company will be better off by $1 per unit.

Explanation:

To solve the above question, we need to calculate the incremental profit or loss first. This will be:

= After assembling sales value - Unassembled unit sales value - Coat if further processing

= $87 - $62 - $26

= -$1

Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".

7 0
3 years ago
On January 1, 2011, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30
horsena [70]

Answer:

Explanation:

Bonds are corporate debt units that are issued by firms inform of financial securities and  are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.

going by the question Upon issuance, Ozark should

Credit premium on bonds payable $100,000

Because face value of bonds =  $10 million but issue price is  $10 million * 101 % i.e $ 10100000

So, premium = 10100000 - 10000000 = $ 100000

5 0
3 years ago
Read 2 more answers
The rate of change is how fast the data is changing.<br><br><br> True<br><br> False
Tasya [4]

Answer:

true

Explanation:

i got it right edg 2020

8 0
3 years ago
Read 2 more answers
Other questions:
  • Scholars of peace studies emphasize the __________ level of analysis when recommending strategies for achieving peace.
    15·1 answer
  • Brenda sold investment land for $200,000 in June. Her basis in the land was $75,000. The purchaser paid Brenda $40,000 cash and
    10·1 answer
  • The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a
    9·1 answer
  • Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values
    12·1 answer
  • A company is considered large if it
    6·1 answer
  • Imagine you are applying for a job, and explain how you would be a good candidate based on your experience
    5·1 answer
  • _____ involves tracking team member performance, motivating team members, providing timely feedback, resolving issues and confli
    11·1 answer
  • Please calculate the answer to the following problem, showing all of your work. NO CREDIT will be given if I cannot follow your
    10·1 answer
  • No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements
    8·1 answer
  • Which of the following should you do during an interview? Question 2 options: Demand specific benefits. Explain why your previou
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!