Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
 
 
C	5.500 (100 x 11%/2)
time	60 (30 years x 2 payment per year)
rate	<em>0.052787474</em>
 
 
PV	$99.4338 
PV of the maturity
  
  
 Maturity   100.00 
 time   60.00 
 rate  <em>0.052787474</em>
  
  
 PV   4.57 
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity  $4.5662 = $104.0000 
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474	x 2 = 0.105574947
The cost of debt for the firm is 10.56%
 
        
             
        
        
        
The democratic style of leadership seeks information, opinions, and preferences, sometimes to the point of meeting with the group, leading discussions, and using consensus <span>or majority vote to make the final choice.</span>
        
             
        
        
        
Answer:
The correct solution is "$42.94".
Explanation:
The given values are:
D0 = 4
Ks = 15%
As we know,
⇒ 
       
       
By using the Gordon Model, we get
⇒ 
          
           ($)
 ($)
 
        
             
        
        
        
Answer:
Consumer Financial Protection Bureau