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Maslowich
3 years ago
11

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

lling for $948. At this price, the bonds yield 5.1 percent.What must the coupon rate be on the bonds?(please show how to do with a financial calculator)
Business
1 answer:
Elena-2011 [213]3 years ago
4 0

please find the attached for an explanation

Download docx
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Calvert Corporation expects an EBIT of $25,300 every year forever. The company currently has no debt, and its cost of equity is
Nataly [62]

Answer:

Value of the company = $124,019.61

Explanation:

<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>

<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.

The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.

And the  value of the company would be determined as follows

Value of the company = Earnings after tax/Cost of equity

Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975

Cost of equity = 15.3%

Value of the company = 18975 /0.153= 124,019.6078

Value of the company = $124,019.61

4 0
3 years ago
The first step in the process of creating a marketing plan is to
tia_tia [17]
The right answer for the question that is being asked and shown above is that: "• set marketing objectives." The first step in the process of creating a marketing plan is to <span>set marketing objectives. The group must know the goals and objectives why they are making a business or something.</span>
6 0
3 years ago
Read 2 more answers
A broker was paid a commission of 6% of the first $120,000 of a sale price and 4% of all over $120,000. What would the sale pric
sergey [27]

The sale price be if the total commission was $9,000 would be $165000.

<h3><u>What is commission?</u></h3>
  • A type of variable-pay compensation for goods or services sold are commissions.
  • Salespeople are frequently encouraged and rewarded with commissions.
  • Additionally, commissions can be created to promote particular sales habits.
  • For instance, commissions may be decreased while providing significant discounts.
  • Or commissions might be raised when promoting particular goods that the company wishes to sell.
  • The framework of a sales incentive programme, which may comprise one or more commission plans, is where commissions are normally administered (each typically based on a combination of territory, position, or products).
  • As a strategy for businesses to try to realign employee interests with those of the company, payments are sometimes calculated as a proportion of revenue.

The broker's 6% commission came to $7,200 (.06 x $120,000). Subtracted from the total commission of $9,000, it leaves an additional balance of $1,800.

Since that portion was paid at the rate of 4%, dividing $1,800 by .04 yields the home's second cost component of $45,000. Add that to $120,000 and the home's total selling price was $165,000.

Know more about commission with the help of the given link:

brainly.com/question/20987196

#SPJ4

8 0
2 years ago
What is one of the largest contributors to health problems in low-income countries?
WITCHER [35]

One of the largest contributions to health problems in low-income countries is the clean water access. It is because this is the common problem in low-income countries because they don’t usually have clean water because of their standing and other factors that create this problem and by that, this is the largest contributions that are used a project or contribution given by other counties to help the low-income countries experiencing this type of crisis.

6 0
3 years ago
Refer to Exhibit 31-4. If a negative externality exists, then curve __________ represents the marginal social cost curve and the
IrinaK [193]

Answer:

Demand

Consumer interference

Explanation:

The social demand curve represents the benefit of demand to the whole society whereas the normal demand curve represents the benefits to the consumers only. The demand curve represents the social cost curve and the market failure is analyzed by the customer interference.

7 0
3 years ago
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