I believe the answer is b
Answer:
<em>Options Include:</em>
A. $20,000
B. $16,800
C. $18,200
<em>D. $21,800 is Correct</em>
Explanation:
Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.
Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.
<em>Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).</em>
Answer:
see explanation
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of a firm from permanent sources of capital pooled together.
WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
where,
Cost of equity = Return on Risk free rate + Beta x Risk Premium
= 9.00 % + 2.5 x (14.00 % - 9.00%)
= 21.50 %
Cost of debt :
<em>similar</em>
N = 7 x 2 = 14
p/yr = 2
pmt = ($787.22 x 8%) ÷ 2 =
fv = $787.22 x number of bonds
pv = $80,000,000
<u>Always use the after tax cost of debt :</u>
after tax cost of debt = interest x ( 1 - tax rate)
B) Fiscal policy requires a short and contentious legislative process
The publishers in the early days of book publishing are
considered to be no other than just a printer for they are able to publish
books and have them written on a reading material which is why they are
functioned to be as printers.
