Answer:
14,783.33 bonds
Explanation:
Given
Par value FV = $1000
n =20 * 2 =40
R= 7.80/2 = 3.90%
Price per bond:
price per bond :
= 216.46
No. of bonds to be issued = 
= 14,783.33 bonds
Answer:
36%
Explanation:
For the computation of the company's return on equity first we need to follow some steps which is shown below:-
Step 1
Earnings before tax = EBIT - Interest
= $452,000 - $152,000
= $300,000
Step 2
Earnings after interest and taxes = Earnings before tax - Tax
= $300,000 - ($300,000 × 40%)
= $300,000 - $120,000
= $180,000
Step 3
Asset turnover ratio = Total revenue ÷ Total assets
3.6 = $4,000,000 ÷ Total assets
Total assets = $1,111,111.11
Step 4
Equity ratio = 1 - Debt ratio
= 1 - 0.55
= 0.45
Step 5
Total Equity = Equity ratio × Total assets
= 0.45 × $1,111,111.11
= $500,000
and finally
Return on Equity = Net income ÷ Equity
= $180,000 ÷ $500,000
= 0.36
or
= 36%
Answer:
Ks = 4%+6% = 10%
Explanation:
so we need to remember that tax rate doesn't affect Cost of equity
in this case the formula will be:
cost of equity is equal to=dividend yield+Growth rate or Ks = D1/P + g
Camp Company's expected dividend yield ( D1) is 4%
growth rate is 6%
SO we get Ks = 4%+6% = 10%
Answer:
annuity
Explanation:
Retirement annuities are helpful because they can guarantee a steady income during your retirement years. They can be either fixed retirement annuities (they provide a fix amount of money until you die) or variable annuities where the amount of money depends on how well your investments perform.
