The coupon rate must be set at 9.77%
The after-tax return on the bonds is:
= Annual payment rate * ( 1 - tax rate)
= 8.1% * ( 1 - 40%)
= 4.86%
The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:
= 4.86% + 1%
= 5.86%
If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:
= After tax yield / ( 1 - tax rate)
= 5.86% / ( 1 - 40%)
= 9.77%
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Answer:
Total loss = 3,592.1053
Explanation:
Given:
Income from rent (For 45 days) = $9,000
Personal use = 12 days
Mortgage = $8,000
Property taxes = $2,000
Utilities = $1,200
Maintenance = $750
Depreciation = $4,000
Computation:
Total Allocated expenses = 45 days / 57 days [$8,000 + $2,000 + $1,200 + $750 + $4,000]
Total Allocated expenses = 45 / 57 [15,950]
Total Allocated expenses = $12,592.1053
Total loss = Total Allocated expenses - Income from rent
Total loss = $12,592.1053 - $9,000
Total loss = 3,592.1053
Answer:
A
Explanation:
Locational excellence can be acheved iby having a good physical location and/or Internet presence. It requires ideal locations good convenience for success
HSN moving to e-commerce is an ideal location tomachieve excellence. Internet presence will by far advance their cause.
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:
Total Cost = 10x + 10,000
Total Revenue = 20x
Equation both,
10x + 10,000 = 20x
The value of x from the equation is 1000.
Answer: 1000
I believe the answer would be the first one a dedication to hard work because if they aren't into their work and don't work for it the business would crumble
hope this helps
