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Gala2k [10]
3 years ago
10

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is qu

oted at 105 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company’s pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Business
1 answer:
ahrayia [7]3 years ago
6 0

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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When employees at all occupational levels are asked to rank what is important to them, the order that put them in is: sufficient
bazaltina [42]

Explanation:

I don't understand the question. Maybe elaborate more.

6 0
3 years ago
Technological advances are difficult to predict. One great advance can replace or substitute for existing products in a relative
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Answer:

The answer is: 3) Printed media

Explanation:

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5 0
3 years ago
A Soviet interpretation of this poster would claim that
andrew-mc [135]
<span>A Soviet interpretation of this poster would claim that
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Americans are practicing economic imperialism
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hope it helps
8 0
3 years ago
Read 2 more answers
The price of a stock is:_______.a) the future value of all expected future dividends, discounted at the dividend growth rate. b)
goldfiish [28.3K]

Answer:

The answer is D.

Explanation:

The price of a stock is also known as price of equity. This is the price the equity of a company is presently worth. The price the potential investors will be able to purchase it. One of the ways of calculating price of a stock is the Dividend Discount Model which can be calculated by:

Ke = (D1÷Po) - g

Ke is the Cost of equity(i.e the required rate of return for investors)

D1 is the next year dividend payments

Po is the price of the stock

g is the expected dividend growth rate

To get Po, we can rewrite the formula as:

Po = D1÷Ke - g÷Ke

We can see now that the expected future dividends will be discounted at the ''Ke'' which is the investors'required rate of return

5 0
2 years ago
Assume that global cleaning service performed cleaning services for a department store on account for​ $180. how would this tran
mart [117]
The transaction effect on the global cleaning service's accounting equation is to increase both assets and equity by $180. 
An asset is a property or an equipment that is purchased for the purpose of business activities, examples of business assets include cash, equipment, buildings and inventory to vehicles and office furniture. In this case assets worth $180 increased (may be cash or bank, depending on the means of payment) and also an increase in equity.
5 0
3 years ago
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