Answer:
It's C !
Explanation:
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Answer:Lien "priority" determines the order in which creditors get paid following a foreclosure. If one lien has priority over another lien, it gets paid before the other lien.
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Read on to learn more about different types of liens, how lien priority is determined, and how priority affects what happens to liens in a foreclosure.
Explanation:
<span>If the woman starts out with a salary that we can call X, then is given a pay cut of 10%, her salary will at that point be 0.9X. However, if she is then later given a raise from that salary of 30%, her new salary will be the 0.9X * (1+0.3) = 1.17X. So, in aggregate, she will have seen a 17% increase in her base salary over the period.</span>
Answer:
transfer cost $25
Explanation:
The minimum transfer price is equal to the marginal price.
The marginal price, in this case, will be the variable cost, because there is no additional fixed cost related to the transfer:
This should be analyzed like a special order request, only the variable cos matter unless we incur in additional fixed cost.
Marginal Cost = Variable cost: 25
Answer: SEE EXPLANATION
Explanation:
Given the following ;
Values depending on Success
$150M, $135M, $95M, $80M
Risk free rate = 5% = 0.05
Pervebtage to be lost in case of bankruptcy = 25% = 0.25
A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million
Assume a zero-coupon debt with a $100million face value
B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million
C.) Yield to maturity (YTM)
(100M÷78.87M) - 1
1.2679 - 1 = 0.2679 = 26.79%
Expected return = 5%
D.) Equity value
0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million
E.) share if no debt is issued
109.52 ÷ 10 = 10.95 per share
F.) Share price if debt of $100M is issued
99.11 ÷ 10 = 9.91 per share
The price differs because bankruptcy cost will Lower the share price.