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Butoxors [25]
2 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]2 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%

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Phantasy [73]

Answer:

B) duress.

Explanation:

"Duress" refers to the exercise of unlawful pressure by one individual upon another in order to coerce such person to act in such a way which he ordinarily will not.

Duress and undue influence are two terms that appear synonymous but actually differ. Under the latter, the act of coercion is carried out by an individual who held something in trust for other. Under duress, there exists a threat to harm, which is not necessarily true in case of undue influence.

In the given case, after Marty's house was burnt, the insurance adjuster instead of approving her claim, rather accused him of burning the house and further threatened him with criminal prosecution, if the former did not agree to much lower claim.  

In this case, Marty may rescind such previously agreed settlement on the grounds of  duress wherein, the insurance adjuster coerced and threatened him for such settlement and forcibly changed his action with the motive of deriving personal gains.

5 0
3 years ago
Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by ________
const2013 [10]

Answer: Four times.

Explanation:

Based on the information given, the government expenditure multiplier in this case goes thus:

K = ∆Y/∆G = 1/1-MPC = 1/MPS

For the first country with a MPS of 0.05, K = 1/MPS = 1/0.05 = 20

For the first country with a MPS of 0.2, K = 1/MPS = 1/0.2 = 5

Therefore, 20/5 = 4.

Therefore, the answer is four times.

8 0
3 years ago
Describe about comparative cost and absolute advantages of international trade​
zzz [600]

Answer:

Here's what I know.

Explanation:

Comparative cost talks about the difference or similarities in cost between two or more prices of good or services.

The advantages of international trade are...

1. It creates harmony between countries.

2. It encourages countries to manufacture their own products.

3. It is a source or income/revenue to the producing countries.

4. It is a good employment opportunity.

5. It improves a country's standard of living.

Hope these help... ♥

4 0
2 years ago
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
Galina-37 [17]

Answer:

Explanation:

Schedule of expected cash collection is a form of budgeted that list the time frames and the amount of payment expected from customers for the purpose of efficient planning.

Account receivables

60% * October sales = 67,000

November sales

40% * 320000 (November sales) = $128,000

                                                       $195000

December cash collection

60%*320000 (November sales) = 192000

40%*330000 (December sales)= $132000

                                                     $324,000

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2 years ago
Which chart is best used to show the results of a class survey with 4 field trip options?
Nimfa-mama [501]
C. Bar chart , It’s a better visual to see the different votes the classmates chose for their 4 field trip options.
7 0
3 years ago
Read 2 more answers
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