Answer:
a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Explanation:
we must first determine the bond's yield to maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2] = {30 + [(1,000 - 930)/60]} / [(1,000 + 930)/2] = 31.17 / 965 = 3.23% x 2 = 6.46%
after tax cost of debt = 6.46% x (1 - tax rate) = 6.46% x (1 - 22%) = 6.46% x 78% = 5.04%
Answer: percentage change in quantity demanded
Explanation: the basic formula for the price elasticity
Answer:
Expenses must be close or above $2000 per month
Explanation:
For a business to operate at a profit, its revenues must exceed the expenses by a sizable proposition. Revenues refer to income from business activities, while expenses are the cost incurred in generating that income. Should the costs match or be higher than the revenue, a business will find it challenging to continue operating.
In this case, the business owner is generating revenues of $2000 per month. If he is struggling to stay open, it means the monthly expenses are around or above $2000. The $2000 that the business is generating per month is not sufficient to cater for all expenses and the desired profits. The business owner is probably making losses, and that why he is having trouble keeping the doors open.
Answer:
comprehensive; sequential interdependence
Explanation:
As Skunkworks believes in interaction and coordination of team members and Levittown builders work when one output of one becomes input of other.
Answer:
$4,914.06
Explanation:
Calculation for how much will the customer pay by disregarding commissions and accrued interest
The 5M which the customers used to buy the notes means that the customer is buying $5,000 par value of the notes.
Take note that the capital letter M in Latin means for $1,000.
Therefore the customer will have to buy at the ask price of 98 and (9/32nds =0.28125) which means that 98%+0.28125 will gives us 98.28127.
Now let calculate for how much will the customer pay by disregarding commissions and accrued interest
98.28125% * $5,000 par
= $4,914.06
Therefore the amount that the customer pay by disregarding commissions and accrued interest will be $4,914.06