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alexgriva [62]
4 years ago
15

Jacob Company sold a $1,000 par value, non-callable bond that has 20 years to maturity and a 7.00% annual coupon that is paid an

nually. The bond is issued for $925, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation?

Business
1 answer:
ratelena [41]4 years ago
5 0

Answer:

4.64%

Explanation:

You might be interested in
Which of the following choices best describes an interest rate?
NNADVOKAT [17]
I belive the answer is D.
hope this helps!
4 0
3 years ago
Read 2 more answers
Millions of software programs have been created and have helped to improve the economy. This is an
I am Lyosha [343]

Answer:

new technology.

Explanation:

An information system or technology can be defined as a set of components or computer systems, which is used to collect, store, and process data, as well as dissemination of information, knowledge, and distribution of digital products.

Generally, it is an integral part of human life because individuals, organizations, and institutions rely on information systems and technology in order to perform their duties, functions or tasks and to manage their operations effectively. For example, all organizations make use of information systems for supply chain management, process financial accounts, manage their workforce, and as a marketing channels to reach their customers or potential customers.

Additionally, an information system or technology comprises of five (5) main components;

1. Hardware.

2. Software.

3. Database.

4. Human resources.

5. Telecommunications.

Overtime, millions of software programs have been created and have helped to improve the economy. This is an example of new technology.

Basically, these new technologies have helped to simplify the process of producing goods and services effectively and efficiently to meet the unending needs and requirements of the consumers.

3 0
3 years ago
Bidder conferences are used to:
Zarrin [17]

Answer:

A. Answer questions about the project prior to submittal of proposals

Explanation:

A bidder conference is a meeting held by a buyer to discuss a possible purchase with multiple potential suppliers.

4 0
3 years ago
Gentle Ben's Bar and Restaurant uses 6,700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottl
Marat540 [252]

Answer:

a. The answer is:762 bottlé.

b. The answer is: 487 bottles.

Explanation:

a. The economic order quantity is calculated as: \sqrt{(2xDxS/H)} = \sqrt{2 x 6968 x 25)/0.6 = 762 units because: D = annual demand = Weekly demand x week opening per year = 134 x 52 = 6968; S = Cost per order = 25; H = Holding cost per unit = 15% x purchase price = 15% x 4 = 0.6

b. Inventory level to place order:

With the inventory system providing a 95 percent service probability, z level is 1.64 (using the NORM.S.INV function in excel).

So Inventory level to place order = 134 * 3 + 1.64 * 30 * 3^0.5= 487 bottles.

7 0
3 years ago
XYZ Corp. has issued $30 million of debentures. Each bond issued has a warrant attached enabling the holder to buy three shares
Anna71 [15]

Answer: D) $2.7 million

Explanation:

Debentures are sold per $1,000 which means that out of $30 million there are;

= 30,000,000/ 1,000

=30,000 bonds.

Each bond is entitled to 3 shares;

= 30,000 * 3

= 90,000 shares.

Price of $30

= 90,000 * 30

= $2,700,000

5 0
3 years ago
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