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ivann1987 [24]
3 years ago
7

Too Young, Inc., has a bond outstanding with a coupon rate of 6.9 percent and semiannual payments. The bond currently sells for

$1,905 and matures in 15 years. The par value is $2,000. What is the company's pretax cost of debt? Multiple Choice 7.51% 7.43% 7.98% 7.72% 3.65%
Business
1 answer:
dlinn [17]3 years ago
8 0

Answer:

7.43%

Explanation:

Where the debt is publicly traded , the cost of debt is equal to the yield to maturity

Approximate yield to maturity = [coupon +(face value - market price )/ number of years to maturity ]/ [{face value + market price]/2]*100

Face value - 2000

Market price - 1905

years to maturity= 30 years

Coupon =( 6.9%*2000)/ 2 = 69

Workings

[69 + (2000-1905)/30] / [(2000+1905]/2 *100)

([69+3.17]/[(3905]/2*100)

(72.17/1952) * 100 = 3.70

Annual yield = 3.7*2= 7.4%

7.4 % being an approximate yield value , the closest option is 7.43%

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Answer: Reduce output

Explanation:

 According to the given question, the barrel O' Biscuits is one of the type of perfectly competitive organization in which its overall marginal cost increasing the company's marginal revenue.

 For maximizing the profit of an organization then we should reduce the output as in the perfect competition the company majorly affected the output only and for shift the overall marginal cost of the company we reducing the output.

 Therefore, Reduce output is the correct answer.      

 

3 0
3 years ago
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Ancient religious structures
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Lemony lemonade has​ 3,200 gallons of lemonade in wip​ inventory, with​ 76% of materials already added. The lemonade is​ 50% thr
rosijanka [135]

Based on the process that Lemony Lemonade uses to make lemonade, the equivalent units for conversion​ costs is 1,600 units.

<h3>What equivalent units are for conversion costs?</h3>

This can be found as:

= Number of units that are WIP x Percentage of completion

Solving gives:

= 3,200 x 50%

= 1,600 units

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4 0
2 years ago
According to the Centers for Disease Control and Prevention, "SIDS is defined as the sudden death of an infant less than 1 year
SSSSS [86.1K]

Answer: True

Explanation:

According to the CDC, Sudden Infant Death Syndrome (SIDS) is the leading cause of children dying unexpectedly and without immediately apparent causes and is said to happen to an 3,700 infants annually.

Sudden Infant Death Syndrome (SIDS) is defined by the CDC as <em>the sudden death of an infant less than 1 year of age that cannot be explained after a thorough investigation is conducted</em>.

SIDS falls under Sudden Unexpected Infant Death (SUID) which is the unexplained death of a child before investigation and as well as SIDS can include infections and accidental suffocation.

5 0
3 years ago
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a.
PolarNik [594]

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

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0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

3 0
3 years ago
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