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
7. A fast-food chain plans to expand by opening several new restaurants. The chain operates two types of
garri49 [273]

≤

Explanation:

                               Drive through                Full Service

Annual revenue          200,000                       500,000

Cost                               100,000                        150,000

Income                           100,000                        350,000

Employee                            5                                   15

Income / employee         20,000                        23,333.33

Using simultaneous equation ,

Let X represent the drive through service  ,and Y represent the full service restaurant

Budget = 100,000x + 150,000y ≤ 2,400,000  (equation 1)

Employer = 5x + 15y ≤ 210   (equation 2)

(Divide equation 1 by 10 ,000)

                     10x+ 15y ≤ 240 (equation 3)

Using elimination method, multiply equation 2 by -2

                      10x +15y ≤240

                      -10x - 30y ≤-420

                        -15y ≤ -180

                             y≤ -180/-15

y = 12

substitute y = 12 in equation 3

10x + 15y≤240

10x +180 ≤240

10x≤240-180

10x≤60

x≤6

                   

12         1,800,000      180

6           600,000         30

6 drive through services and 12 full services should be opened.

                           6 Drive through                12 full service            20

Cost                             600,000                      1,800,000           2,400,000

Employees                      30                                 180

Net income                     600,000                    4,200,000

6 0
3 years ago
. A manufacturer uses manages its inventory using fixed quantity system and wants to be able to fully supply its customers at le
Vsevolod [243]

Answer:

Lead time needed is approximately 1 day

Explanation:

In this question, we are asked to calculate the maximum number of lead days needed by a manufacturer to give a supplier

We proceed as follows;

They want to be able to fully supply the customer at least 50 out of the 52 weeks.

Mathematically; service probability = 50/52 = 0.96 or 96%

At 96% service level value of Z = 1.75

Standard deviation of daily demand (σd) = 50 units

Safety stock = 100 units

Suppose lead time = L

Safety stock = Z × σ d × √L

100 = 1.75 × 50 × √L

=100 = 87.5 × √L

√L = 100/87.5

√L = 1.142857142

L = 1.142857142^2

L = 1.306122448

6 0
4 years ago
You are employed by a small manufacturer of all organic ready to eat breakfast cereals. The company would like to develop its sa
coldgirl [10]

Answer:

See explanation

Explanation:

Instructions:  

1. Prepare 250 ml of water in a pan and warm it over a light flame of gas.

2. Mix teaspoon of salt and capsicum and some green chilies in a bowl .

3. Also, mix some of the chopped tomatoes and mix the salt, green chilies and tomato in a bowl.

4. Now mix that cereal in hot water and stir it till It gets a thick paste .

5. Add tomato, salt and chili mixture to the cereal and mix it properly,

Hope this helps!

7 0
3 years ago
Believing that wealthy people deserve to be robbed because of their ill-gotten gains best illustrates a potential consequence of
boyakko [2]
The answer that best completes this statement is THE JUST-WORLD PHENOMENON. This is the potential consequence wherein some people believe that wealthy people deserve to be robbed <span>because of their ill-gotten gains. When we say just-world phenomenon, this is similar to the idea of "karma" wherein it is believed that people face consequences that they deserve. So for the wealthy, due to their ill-gotten gains, they are deserving to be robbed as a form of karma and this is how a "just world" is being practiced. </span>
4 0
3 years ago
Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month note. The entry made
Reptile [31]

Answer:

B. Cash 150,000 Notes Payable 150,000

Explanation:

Sr                           Account                      Dr                            Cr

Jan 1          Cash                               $ 120,000

                Notes  Payable                                                  $ 120,000

This entry would be made in the books of Guarantee Company. As the interest has not yet accrued so no entry regarding the interest expense or interest payable would be made.

Choice A is not correct because it accounts for interest expense which has not yet accrued from the cash received.

Choice C is also incorrect because the actual amount of cash received is $ 150,000.

Choice D is also incorrect because Cash is debited with an increase and liabilities increase with a credit and this is reverse.

Best Choice is B

5 0
3 years ago
Other questions:
  • Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in uni
    12·1 answer
  • Chris gilbert, 1966-68, was the first person in college football history, and the only ut player, to rush for more than 1000 yar
    5·1 answer
  • What are six advantages of teen entrepreneurs?
    14·1 answer
  • Curfew is an example of a workplace policy. <br> True<br> False
    15·2 answers
  • Discuss the organizational structure currently used by San’s Consulting and would you recommend the continuous use of this struc
    12·1 answer
  • Which job would require a license or certification?
    7·2 answers
  • If the company can charge only one price, what should it be? $ Part 2 (5 points)See Hint Suppose instead of charging one price f
    15·1 answer
  • A convertible bond has a par value of $1,000, but its current market price is $950. The current price of the issuing company's s
    12·1 answer
  • Davidsons has 15,000 shares of stock outstanding with a par value of $1 per share and a market value of $45 per share. The balan
    15·1 answer
  • Suppose that China is a small country of peanuts import, and the demand and supply of peanuts are as follows:
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!