Answer:
$788.35
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 14% ÷ 4 quarters = 3.5%
NPER = 4 × 4 quarter = 16 years
PMT = $1,000 × 7% ÷ 4 quarters = $17.50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $788.35
I believe this answer is true.
Answer:
D.
Explanation:
Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.
Let go through each of answer option one by one:
a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False
b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle
c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle
d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True
Answer:
the resources consumed in production
Explanation: answer for ed2020
