1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Butoxors [25]
3 years ago
7

, suppose the book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zer

o coupon bond with 12 years left to maturity; the book value of this issue is $100 million and the bonds sell for 61 percent of par. What is the company’s total book value of debt? The total market value? What is your best estimate of the aftertax cost of debt now? (Assume that semi-annual compounding is used for the zero-coupon bond.)
Business
1 answer:
vlada-n [284]3 years ago
5 0

Answer: See explanation

Explanation:

a. The company's total book value of debt will be:

= Value of debt + Value of zero coupon bonds

= $70 million + $100 million

= $170 million

b. The market value will be:

= Quoted price × Par value

= ($70 × 1.08) + ($100 × 0.61)

= $75.6 + $61

= $136.6 million

c. The aftertax cost of debt will be:

= (1 - Tax rate) × Pre tax cost of debt

= (1 - 35%) × 5.7%

= 65% × 5.7%

= 3.7%

You might be interested in
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
love history [14]

Answer:

$25,760,000

Explanation:

The net amount of decrease and increase of cash a business or individual owns.

To find the proper cash flow amount used as the initial investment in fixed assets, use the following:

Calculation of initial investment outflow = cost of land + cost of plant + grading cost

= $9,600,000 + 15,200,000, + $960,000

= $25,760,000

Calculation of initial investment outflow = $25,760,000

Therefore the initial investment outflow is $25,760,000

4 0
3 years ago
When using the ice point method for calibrating thermometers you’ll need to place the thermometer in the ice water and adjust th
madam [21]
<span>When using the ice-point method of calibration, you should immerse the thermometer in ice water for at least 5 minutes, which allows the reading to stabilize. After this amount of time has elapsed, the thermometer should be adjusted to read 32 degrees F (0 degrees C), if it was not already displaying this value.</span>
7 0
3 years ago
Which of the following statements is​ correct? A. GDP includes nonmarket production but is not a measure of a​ nation's overall
sergejj [24]

Answer:

B. GDP includes non market production and is therefore a good measure of a​ nation's overall welfare

Explanation:

  • A GDP is a total values of the goods and the services that are produced within a given country border and thus is the most common measure of measuring the country in terms of the size of the economy.
  • Thus can tell the health of the country and is the monetary value of all the goods and services. The non market activities include the production of the food at homes these services don't account for the in-country GDP.
4 0
3 years ago
The​ ____________ concept is based on the​ development, design, and implementation of marketing​ programs, processes, and activi
crimeas [40]

Answer:

The correct answer is Holistic marketing.

Explanation:

Holistic marketing is a term coined by Philip Kotler, in which the areas of exploration, creation and delivery of the value that a company carries out through the management of relations with all its stakeholders are integrated. This means working with "value" in terms of customer relationships, competition and our network of collaborators.

With this strategy, it is possible to increase the value perceived by all parties, obtaining a high level of quality in the processes and a growth in the share of customers thanks to loyalty. Many times the term is used to refer to 360º (multi-channel) or blended marketing techniques, but in reality it is an expanded value management.

5 0
3 years ago
Under which one of the following circumstances can an MRP system be used to its best advantage?
Drupady [299]

Answer:C. When the item demand is constant

Explanation:

MRP means material requirement planning it shows when materials needs to be replenish for inventory production, so that inventory is only produced as at when needed.

A constant demand will help to determine perfectly when material is needed.

5 0
3 years ago
Other questions:
  • The ledger of Mai Company includes the following accounts with normal balances as of December 31: Common Stock $10,800; Dividend
    12·1 answer
  • ABC Company is a manufacturing firm. At the beginning of July, ABC had a total inventory balance of $48,000. During the month of
    13·1 answer
  • What is animation?
    9·1 answer
  • Match the items with their respective descriptions.
    10·1 answer
  • Stowell earns 20% interest compounded annually on his savings. He will deposit $1,500 today, $1,650 one year from today, and $1,
    6·1 answer
  • At January​ 1, 2019, the Accrued Warranty Payable is $ 1 comma 100. During​ 2019, the company recorded Warranty Expense of $ 19
    11·1 answer
  • Who is national debt most unfair to?
    8·1 answer
  • 16) The Nantucket Nugget is unlevered and is valued at $640,000. Nantucket is currently deciding whether including debt in its c
    15·1 answer
  • A developer of a new planned unit development (PUD) has gathered the following market information for University City. The devel
    6·1 answer
  • f a tenant remains in possession of leased property after the expiration of the lease term, without paying rent and without the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!