Answer:
6.64%
Explanation:
The pretax cost of debt is the Yield to Maturity (YTM). Since the coupons are paid semiannually, adjust the duration and the coupon payment amount to semi-annual terms.
You can solve for the YTM using a financial calculator with the following inputs;
Maturity of the bond; N = 20*2 = 40
Face value ; FV = 1000
Semi-annual coupon payment ; PMT = (7%/2)*1000 = 35
Current price of the bond; PV = -1.04*1000 = -1040
Then compute the semiannual interest rate ; CPT I/Y = 3.318%
Therefore, pretax cost of debt; YTM = 3.318 *2 = 6.64%
I’m happy to answer this question if you can give me more detail.
Answer:
The time line from minting to the first sale is:
0-192
$15 - $430,000
we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 + r)t
Solving for r :
r = (FV/PV)1/t - 1
r = ($430,000/$15)1/192 - 1
r = .0549, or 5.49%
The time line from the first sale to the second sale is:
0-35
$430,000 - $4,582,500
we can use either the FV or the PV formula. Using the FV formula, that is:
FV = PV(1 + r)t
Solving for r:
r = (FV/PV)1/t - 1
r = ($4,582,500/$430,000)1/35 - 1
r = .0699, or 6.99%
The time line from minting to the second sale is:
0-227
$15 - $4,582,500
we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 + r)t
Solving for r, we get:
r = (FV/PV)1/t - 1
r = ($4,582,500/$15)1/227 - 1
r = .0572, or 5.72%
Answer:
The correct answer is D: economies of scale
Explanation:
Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.
The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.
Answer:
The correct answer is True.
Explanation:
At the end of a common agreement, there is no consequence for any of the parties, since it is their will to end the contract that they previously agreed to sign
Termination of the lease by the lessor.
The lessor may unilaterally terminate the lease under the conditions established by law, paying any compensation that may arise.
The law expressly establishes when and why the lease can be terminated by the lessor, and only in those cases can the contract be terminated without there being room for the payment of a penal clause or non-compliance, if any, since in those cases the law in particular established how and why to terminate the contract, and set the penalties to which there is room.
