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
Anestetic [448]
4 years ago
15

KatyDid Clothes has a $160 million (face value) 20-year bond issue selling for 101 percent of par that carries a coupon rate of

12 percent, paid semiannually. What would be KatyDid's before-tax component cost of debt? (Round your answer to 2 decimal places.)
Business
1 answer:
HACTEHA [7]4 years ago
7 0

Answer:

11.87% pre tax cost of debt

Explanation:

Coupon Rate = 12.00%

Years to Maturity = 20.0

NPER = 40 (years of maturity x 2)

PMT = $60.00 (Face value x coupon rate) / 2

Face Value = $1,000.00

Price = PV = $1,010.00

Rate = 5.93%

          rate(nper,pmt,-pv,fv)

          rate(40,60,-1010,1000)

Yield = Rate x 2 = 11.87% pre tax cost of debt

You might be interested in
Smoking levels: According to the Centers for Disease Control and Prevention, the proportion of U.S. adults age 25 or older who s
marusya05 [52]

Answer:

the null hypothesis is: The proportion of U.S. adults age 25 or older who smoke is 0.22

Explanation:

A null hypothesis is presumed to be true until evidence proves the contrary. Statistical data nullifies it for an alternative hypothesis.

In this case, the null hypothesis is: The proportion of U.S. adults age 25 or older who smoke is 0.22

The hypothesis that has to prove it is different is: the proportion of U.S. adults age 25 or older who smoke is lower than  0.22

7 0
4 years ago
Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent
nlexa [21]

Answer:

The reward to risk ratio for stock Y is 7.22%

The reward to risk ratio  for stock Z is 5.50%

Explanation:

First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.

The risk premium is calculated as stock expected return minus risk free rate

The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller

For stock Y risk premium is 18.2%-5.2%=13%

For stock Z risk premium is 9.6%-5.2%=4.40%

For stock Y reward to risk ratio=13%/1.8=7.22%

For stock Z reward to risk ratio=4.40%/0.8=5.50%

Hence stock Y has a higher reward to risk ratio

4 0
3 years ago
Read 2 more answers
Martin wrote Dall and offered to sell Dall a building for $200,000. he offer stated it would expire 30 days from April 1. Martin
ryzh [129]

Answer:

If the offer is rejected by the Dall then the offer is no more in place. The particular reason is that Martin is not required to tell Dall that the offer is no more in place. Suppose Martin is wishing to close his offer and till now Dall has not declined the offer. So Martin will have to communicate Dall that the offer is been closed. If Dall has communicated Martin that he has rejected the offer, then this means the offer essence has vanished. Hence Martin has no liability towards Dall, if Dall sues him.

7 0
3 years ago
Why should you make sure that your cover letter has no spelling or grammar errors?
satela [25.4K]
<span>silly mistakes and minor oversights may be a reason your cover letter is thrown out. </span>
8 0
3 years ago
Ahmad is a new manager at AJ Homes Company. He has absolutely no experience as a manager nor does he know the technology of his
lana [24]

Answer:

B. neutralizers

Explanation:

Leadership neutralizers: The term "leadership neutralizers" is described as one of the factors that tend to prevent a specific manager from taking a few actions in order to improve or enhance work performances, or to take the actions that the "manager" ought to do to perform irrelevantly.

In the question above, the given statement is an example of neutralizers impacting leadership styles and behaviors.

5 0
4 years ago
Other questions:
  • Assume the costs of production in the U.S. auto industry are rising and, at the same time, the prices of Japanese-made autos are
    5·1 answer
  • What would be helpful in analyzing positive and negative trends and being able to adjust for them in the advertising plan?
    9·1 answer
  • Which of the following is NOT an advantage to the corporate form of organization?A. Ability to raise large sums of equity capita
    15·1 answer
  • On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will no
    10·1 answer
  • On December 31, 2018, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $75,000
    15·1 answer
  • Vincent believes that the organizational and operational structures of a police organization are solely determined by its politi
    5·1 answer
  • Why would someone choose to own a car instead of leasing?
    8·1 answer
  • Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,
    7·1 answer
  • Charley spends all of his income on soft drinks and pizza. Suppose he is currently buying these products in amounts such that hi
    14·1 answer
  • Banks are financial intermediaries that: have customer deposits as its primary asset and loans to borrowers as their primsry lia
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!