If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue:

If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate

Law Incorporation [45]

Answer:

the current yield on the bond is lower now than when the bond was originally issued.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.

7 0

3 years ago

Fixed financial charges include ________. stock repurchase expense common stock dividends and bond interest expense common stock

DaniilM [7]

The fixed financial charges are fixed e<span>xpense that recur on a regular basis. </span>
Fixed financial charges include bond interest expense and preferred stock dividends. Bonds are fixed income investments used by companies, municipalities, states to raise money or finances.

3 0

4 years ago

Cash Discount Calculations On June 1, Meadow Company sold merchandise with a list price of $40,000. For each of the sales terms

Step2247 [10]

Answer:

Credit Terms Date Paid Amount received

1 2/10,n/30 June 8 $39,200

2 1/10, n/30 June 15 $40,000

3 1/15, n/30 June 14 $39,600

4 n/30 June 28 $40,000

Explanation:

Sales are made on June 1 with list price $40,000

1.

June 8

The receipt is within the discount period of 10 days, so the amount received will be net of 2% discount as follow

Amount Received = $40,000 x ( 1 - 2%) = $39,200

2.

June 15

The receipt is after the discount period of 10 days, so the full amount will be received as follow

Amount Received = $40,000

3.

June 14

The receipt is within the discount period of 15 days, so the amount received will be net of 1% discount as follow

Amount Received = $40,000 x ( 1 - 1%) = $39,600

4.

June 28

There is no discount offered in this term and credit period of 30 days is given. The cash receipt is within the credit period, So the full amount will be received as follow

Amount Received = $40,000

4 0

4 years ago

Suppose your company needs $18 million to build a new assembly line. Your target debt-equity ratio is .7. The flotation cost for

wariber [46]

Answer:

a. Weighted average flotation cost

= FCE(E/V) + FCD(D/V)

= 7(100/170) + 4(70/170)

= 4.12 + 1.65

= 5.77%

V = E + D

V = 100 + 70 = 170

b. Flotation cost of debt financing

= 4% x $18 million

= $0.72 million

True cost of the building after taking flotation cost into account

= $18 million + $0.72

= $18.72

Explanation:

The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.

4 0

4 years ago

Jack works at solar company and has just undergone a performance review. he feels that the process by which the ratings were ass

Luba_88 [7]

<span>The type of justice that Jack is concerned about is the procedural justice. This is an idea of having to establish or maintain fairness in which when engage to this, people who are involve are likely to engage of resolving the dispute that is present.</span>

5 0

3 years ago