Answer:
The answer is 7.65%
Explanation:
The cost of capital is equal to the cost of debt in this example as it involves a debt instrument. The formula for the cost of debt is as follows:
(Interest Expense x (1 – Tax Rate) ÷ (Amount of Debt – Debt Acquisition Fees + Premium on Debt – Discount on Debt)
In the example, the given values are the following:
Interest Expense = 7% x $1,000 = $70 (no tax rate was provided)
Amount of debt = $1,000 (face value of the bond)
Debt acquisition fee = $15
Discount on debt = $70 ($1,000 face value vs. the $930 proceeds of the bond, the bond was issued at a discount)
Solution:
$70 ÷ ($1,000 - $15 - $70) = 7.65% cost of capital (cost of debt)
Answer:
Poultry is generally considered to be a healthy meat, and has several nutrients. These nutrients and their amounts vary depending on the meat cut of the poultry, for example, chicken breasts have a lot more protein and less fat than chicken wings.
Overall, poultry is characterized by significant amounts of protein, of minerals like zinc, iron and copper, and of vitamins like vitamin B6 and thiamin.
Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).
Explanation:
In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).
In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.
Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.
For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.
Answer:
Earning dividends from stock in the federal reserve
Explanation:
Earning dividends like this can be a small asset over the long period.
