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suter [353]
3 years ago
9

"Easy Rider Inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. Interest is paid annually. After flotation

costs, Easy Rider received $928 per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 40 percent.
a) 22%
b) 11%
c) l3%
d) 6.6%
e) 4.4%"

Business
1 answer:
STatiana [176]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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In what year did engineers complete the first programmable microprocessor?
Nitella [24]
The answer is B. 1971

The first programmable microprocessor was completed in late 1971. 

Hope this helped. Have a great night!
6 0
3 years ago
You can buy commercial paper of a major u.S. Corporation for 495000 $ the paper has face value of 500000 $ and in 45 days from m
BartSMP [9]

Answer:

Discount yield is 8%

Bond equivalent yield is 8.19%

Explanation:

The discount yield on the commercial paper is calculated as:

(($500,000 - $495,000)/$500,000 ) x (360/45)

= ($5,000/$500,000 x (360/45)

= 0.01 x 8

= 0.08

= 8%

And bond equivalent yield is calculated as:

(($500,000 - $495,000)/$495,000) x (365/45)

= ($5,000/$495,000) x 8.11

= 0.0101 x 8.11

= 0.0819

= 8.19%

7 0
3 years ago
Which of the following are reported at fair value except trading securities: a) held-to-maturity securities b) available-for-sal
horsena [70]

Answer:

B. Available for sale securities

Explanation:

Available for sale securities refer to debt or equity instrument. They are purchased with a pre defined aim of selling them before their maturity, for  profit earning. Such profit is usually a 'quick capital gain'. Apart from profit, they also assist for liquidity, repaying needs of companies.

These equities are reported at 'fair value'. This implies that unrealised gains & losses are not included in earnings. They are rather recorded in a specific segregated item head 'accumulated other comprehensive income' of shareholder's equity.

8 0
3 years ago
In many cities, grocery stores find that their sales are much greater on days when they have advertised their special bargains.
Savatey [412]

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Minimize inputs

b) Minimize outputs

c) Minimize the difference between the inputs and outputs

And the correct answer is the option C: Minimize the difference between the inputs and the outputs.

Explanation:

To begin with, the criteria used by those shoppers could be understood as the one that tries to minimize the difference between the inputs and the outputs due to the fact that when they see the particular good in offer they tend to buy it more frequently that when the same good is not in offer, however they do not increase the amount of goods bought instead they keep that number the same so they only take advantage of the offer itself and that is why that the company does not increase the physical volumen of the goods sold.

8 0
3 years ago
6. One advantage of an enclosed office layout is that employees can be closely
Harman [31]
The answer is False
3 0
3 years ago
Read 2 more answers
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