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sergij07 [2.7K]
3 years ago
5

Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is

quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 4 percent annually. What is the company’s pretax cost of debt?

Business
1 answer:
ale4655 [162]3 years ago
7 0

Answer:

3.56%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

NPER = 11 × 2 = 22 years

Present value = $1,000 × 104% = $1,040

Future value = $1,000

PMT = 1,000 × 4% × (6 months ÷ 12 months)  = $20

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the answer would be 3.56% ( 1.78 × 2)

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If the United States exports $150 billion of goods and services and imports $100 billion of goods and services and there is no o
natta225 [31]

Answer:

$50 billion.

Explanation:

Current Account represents the balance of Trade (Imports & Exports) plus net income and direct payments. Countries strive to maintain their current account surplus which is an indicator that the country is producing and exporting more than its consumption and imports. In this case, it is clearly stated that there are no other factors like income or transfers, so we just have to compare exports and imports. The formula for Current Account in this case is:

                                                Exports - Imports

⇒ 150 - 100 = $50 billion.

3 0
3 years ago
Which of the following statements regarding Federal Reserve independence is​ incorrect?
hichkok12 [17]

Answer:

The correct answer is option D

D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.

8 0
3 years ago
A worker, who is typical in all respects, works for a wage of $30,000 per year in a perfectly safe occupation. Another typical w
Fantom [35]

Answer:

$6,000,000

Explanation:

Change in risk = 0 in 1,000 to 1 in 1,000 = 0 to 0.001 = +0.001

Change in wage = $30,000 to $36,000 = +$6,000

Therefore:

wage/risk = 6,000/0.001

= $6 million or $6,000,0000

The value of a human life for workers with these characteristics should a cost-benefit analyst use is $6,000,000 because workers are willing to receive an extra $6,000 for a 1 in 1,000 increase in risk of death, implying a value of life of $6 million)Value of human life for workers with these characteristics = $6 million .

In order words the workers require $6,000 to accept a death risk of .001. The value of life implied by this is $6,000/.001 = $6,000,000.

4 0
3 years ago
Read 2 more answers
"what is the difference between a credit card and a debit card? why are credit cards considerably more popular with u.s. consume
Y_Kistochka [10]
The difference between credit card and a debit card is that:
Debit cards are linked to your bank account, and money is withdrawn from the account as soon as the transaction occurs. While credit cards are not linked to your bank account, they are linked to the bank or institution that issued the card. Credit card are billed monthly.
Credit cards are considerably more popular with U.S. consumers because debit cards are linked to your bank account and if someone stole the card, all the money in your bank account will vanish. where credit cards are not linked to your bank account, it is charged monthly as much money as you want.
7 0
3 years ago
The major work elements defined in the statement of work (SOW) section along with the detailed list of deliverables provide the
Natali5045456 [20]

Answer:

Work Breakdown Structure (WBS)

Explanation:

Note that, <em>the statement of work (SOW</em>)  is usually used in project management to define project-specific activities, deliverables etc.

The Work Breakdown Structure (WBS)<em> finally breaks down the project into smaller components</em> as found in the image below. The image shows the case of a project breakdown to design and build a custom bicycle.

3 0
3 years ago
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