Answer:
4.51%
Explanation:
First, find the yield to maturity(YTM) of the bond; this would be the pretax cost of debt.
Using a financial calculator, input the following;
Face value of the bond ; FV = 1000
Semiannual coupon payment; PMT = (8%/2)*1000 = 40
Present value of bond; PV = -1050
Time to maturity; N = 20*2 = 40 semiannual payments
then compute semi-annual interest rate ; CPT I/Y = 3.756%
The pretax cost of debt = 3.756% *2 = 7.51%
After tax-cost of debt is used for WACC calculation and is therefore as follows;
7.51%(1-0.40) = 4.51%
Answer:
I am not sure but I think B. is the answer
If you were to buy 5 yards at $14 a yard, your first cost would be at $70. But with 14 being 20% of 70, you would subtract 14 out of the $70, which would leave your final cost at $56.
Answer:
a. should be discouraged because it lessens a quality that makes that antique desirable
Explanation:
In pricing theory, the price for a good or service should increase as its scarcity increases. Now selling the antique at a bargain price will reduce the price of it and thereby making it less scarce and rare.
