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topjm [15]
3 years ago
5

Hydro Systems has 15-year bonds outstanding with a coupon rate of 6 percent. Interest is paid annually. The face amount of each

bond is $1,000. What is the company's pre-tax cost of debt if the bonds currently sell for $1,080?
A) 5.22 percent
B) 5.55 percent
C) 4.71 percent
D) 5.36 percent
E) 4.42 percent
Business
1 answer:
Leya [2.2K]3 years ago
7 0

Answer:

A) 5.22 percent

Explanation:

The Pretax cost of debt is the Yield to maturity (YTM) of bond.

Using a financial calculator , you can solve for the YTM with the following inputs;

Face value ; FV = 1000

Maturity of bond; N = 15

Annual coupon payment; PMT = coupon rate * Face value =  6%*1000 = 60

Current price; PV = $1,080

then compute annual interest rate; CPT I/Y = 5.22%

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A public service ad on television shows a young boy resisting the attempts of someone off-camera to persuade him to accept drugs
Stells [14]

Answer: Attitude inoculation

Explanation:

Attitude inoculation is referred to as the technique or method which is used in order to make an individual immune to the attempts taken in order to change the attitude thereby firstly exposing themselves to the small arguments taken against their position. It is referred to as so since it tends to works similarly like a medical inoculation, that exposes an individual's body to the weaker state of the virus.

5 0
4 years ago
Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.

8 0
3 years ago
When the demand curve shifts to the left and all else is held constant, the equilibrium price ________ and the equilibrium quant
rewona [7]

When the demand curve shifts to the left and all else is held constant, the equilibrium price <u>falls</u> and the equilibrium quantity <u>falls</u>.

<h3>The types of chart.</h3>

In Economics, there are two main types of chart that can be used to illustrate the relationship between the total quantity of goods or services that are demanded by consumers and the total quantity of goods or services that were supplied by a manufacturer (producer) at a particular price and these include the following:

  • Supply schedule
  • Demand schedule

<h3>What is an equilibrium?</h3>

An equilibrium can be defined as the point on a supply and demand chart where the demand curve and the supply curve intersect.

In conclusion, the equilibrium price and the equilibrium quantity would <u>fall</u> when the demand curve shifts to the left and all else is held constant.

Read more on equilibrium here: brainly.com/question/2000166

#SPJ1

6 0
2 years ago
Rangle contracts with Siena to buy a certain horse for her. Rangle makes a deal with Timberline Stables, the owner of the horse,
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Answer: indemnification

   

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Indemnifying and keeping innocent means the same thing — making it whole after a defeat. Usually, but not always, the obligation to indemnify is reconcilable with the contractual obligation to "keep harmless" or "save harmless.

Hence from the above we can conclude that Rangle has right of indemnification.

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3 years ago
Ultimately your business offers a
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Usually a product or a service to the surrounding community or communities
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4 years ago
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