Answer:
the annual pre-tax cost of debt is 10.56%
Explanation:
the beore-tax component cost of debt will be the actual market rate of the bonds, as they offer an interest rate of 11% but are selling at 104 points not at par thus, there is a difference between the rates.
We solve for the rate which makes the coupon and maturity 104
with excel or a financial calculator
PV of the coupon payment
C 5.500 (100 x 11%/2)
time 60 (30 years x 2 payment per year)
rate <em>0.052787474</em>
PV $99.4338
PV of the maturity
Maturity 100.00
time 60.00
rate <em>0.052787474</em>
PV 4.57
<em><u>Adding both we should get 104 which is the amount the bonds is selling:</u></em>
PV coupon $99.4338 + PV maturity $4.5662 = $104.0000
The rate is generated using goal seek or wiht a financial calculator.
This rate is a semiannual rate, so we multiply by 2 to get the annual cost of debt:
0.052787474 x 2 = 0.105574947
The cost of debt for the firm is 10.56%
Answer:
C
Explanation:
The consumers associated the saying with the Doritos brand.
Answer:
The correct option here is E) all of the above.
Explanation:
Job amenities are nothing but the perks or benefits that a employee receives from his or her employer company . There can be various benefits that a employee can receive like health insurance, pension plan , dental insurance, vacation, or sick days , good working conditions etc.
All of the choices given in the question are examples of job amenities that a employee receives
Answer:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources
(i.e : India has an absolute advantage in operating call centers compared to the Philippines because of its low cost of labor and abundant labor force.)
Explanation:
Answer:
Hey,
Thanks for your question but none of the links have been provided. Please provide the appropriate links
