The legal document that describes the rights and obligations of both the bondholders and the issuer is called the <u> indenture</u> bond.
<h3>What is meant by indenture?</h3>
A legal and binding agreement known as an indenture is frequently related to bond deals, real estate, or bankruptcy. A thorough description of the terms, conditions, and covenants can be found in an indenture.
<h3>Who is bondholder?</h3>
A bondholder is a buyer or the owner of debt instruments, which are frequently issued by governments and enterprises. In essence, bond issuers are borrowing money from bondholders. When bonds mature, bondholders are reimbursed for their initial investment, or principle.
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<span>5. Identifies a product with a mark which can be "read" by electronic scanners.
UPC is a machine scannable bar code that's used in the United States, Canada, United Kingdom, and many other countries for tracking items in stores. The very first UPC marked item scanned at a retail checkout was a10-pack of Wrigley's Juicy Fruit chewing gum on June 26, 1974. This item was put on display in the Smithsonian National Museum of American History in Washington, D.C.
With that in mind, let's look at the options and see what does or does not make sense.
1. Was required by the federal fair packaging and labeling act.
* Since this act requires "consumer commodities" to be labeled with their identity, name & place of manufacturer, and its quantity, this is far more information than a 10 digit code can encode. So this answer is wrong.
2. Slows down the retail checkout process.
* If the UPC code slowed things down, that would increase the cost to the retailers for no gain. In fact, the use of the UPC has reduced checkout times and has improved accuracy. So this choice is also wrong.
3. All of the above are true.
* Since the above 2 are wrong, so is this.
4. Involves placing the price per ounce on or near the product.
* The UPC identified what the item is. The price doesn't appear on the UPC. So this too, is wrong.
5. Identifies a product with a mark which can be "read" by electronic scanners.
* This is exactly what the code does. So this is the correct choice.</span>
Answer:
To calculate the after-tax cost of debt, multiply the before-tax cost of debt by <u>(1 - tax rate)</u>.
Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is <u>= 10.20% x (1 - 45%) = 5.61%</u>.
At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?
<u>B. 4.47%</u>
pre-tax cost of debt = bond's yield to maturity
approximate YTM = {120 + [(1,000 - 1,329.55)/15] / [(1,000 + 1,329.55)/2] = 98.03 / 1,164.775 = 0.08416 = 8.416%
approximate after tax cost of debt = 8.4% x (1 - 45%) = 4.62 = 4.62
since I used the approximate yield to maturity, my answer is not exact. That is why I have to look for the closest available option.
Answer:
the Noel hypothesis
Explanation:
During the Great Depression, unemployment rates soared and competition for jobs increased. As a result, efforts to expel Mexican laborers began, as the Noel hypothesis would predict.
