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____ [38]
3 years ago
6

Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of

10%.
Business
1 answer:
SpyIntel [72]3 years ago
5 0

Answer:

Bond Price​= $424,588.28

Explanation:

Giving the following information:

Face value= $485,000

Number of periods= 10*2= 20

Interest rate= 0.08/2= 0.04

YTM= 0.1/2= 0.05

T<u>o calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 19,400*{[1 - (1.05^-20)] / 0.05} + [485,000/1.05^20)

Bond Price​= 241,766.88 + 182,791.4

Bond Price​= $424,588.28

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Bartlett Company's target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.0
anyanavicka [17]

Answer:

WACC is 9.26%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of common share x Weightage of common share ) + ( Cost of Preferred share x Weightage of Preferred share ) + ( Cost of debt x Weightage of debt )

Cost of debt is already given as after tax cost of debt.

WACC = ( 12.75% x 45% ) + ( 7.5% x 15% ) + ( 6% x 40% )

WACC = 5.7375% + 1.125% + 2.4% = 9.2625 % = 9.26%

4 0
3 years ago
Use your knowledge of management communications to select the three missing labels from the following image.
dybincka [34]

Answer:

A. Purpose-directed: The communication conducted by the manager must be aligned with the culture and value system of the organization

I'm sure about this one but others I have not idea so far If I get it I'll upload then.

5 0
2 years ago
​Employees' beliefs in the degree to which they influence their work​ environment, their​ competence, the meaningfulness of thei
pogonyaev

Answer: Psychological empowerment

Explanation:

 The psychological empowerment is the term which refers to the work environment in which it reflecting the self motivation and control in the work.

This term is basically describe about the different types of perspective of an employees by internalization the goals in an organization.

According to the given question, the employees is basically belief in their degree and also influence the work environment in terms of self determination and they also perceived the autonomy.

 Therefore, Psychological environment is the correct answer.

7 0
4 years ago
Which of the following tends to occur when the unemployment rate increases? A. all of the above B. a reduction in the labor forc
Luda [366]

Answer:

B. a reduction in the labor force participation rate

Explanation:

In the case when the rate of unemployment increased so there would be decrease in the labor force participation rate as the unemployment rate defines the percentage correspond with the labor force i.e. without the job or the labor force who has not in the job in the current period

hence, the correct option is B.

4 0
3 years ago
Read 2 more answers
The current spot price of WTI Houston Crude Oil Futures, expiring in 1-year, is $43 (per bbl). You can contract storage cost for
jekas [21]

Answer:

-3.49%

Explanation:

Theoretical price (Ft) = $43

Current spot price (St) = $40.5

Storage cost (u) = 2%

Risk free rate (Rf) = 0.5%

T = 1 year

Let y = Convenience yield

Ft = St e^(Rf + u - y)T

43 = 40.5 e^(0.005 + 0.02 - y)

y = - 3.49%

Hence, convenience yield = -3.49%

7 0
3 years ago
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