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pochemuha
3 years ago
11

At the present time, Andalusian Limited (AL) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. Thes

e bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If AL wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)
Business
1 answer:
maw [93]3 years ago
3 0

Answer:

2.69%

Explanation:

According to the scenario, computation of the given data are as follows,

Face value (FV) = $1,000

Time period = 5 years

Present Value (PV) = $1,438.04

Coupon rate = 14%

Payment (pmt) = 14% × $1,000 = $140

So, by using excel function find YTM, we get

YTM = 4.13%

So, After Tax cost = Rate ( 1 - tax rate)

= 4.13% ( 1 - 35%)

= 4.13% × 65%

= 2.685% or 2.69%

Excel function is attached below.

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A lumber mill is capable of producing 10,000 board feet of lumber per day when run ten hours per day with minimal breaks. Over t
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Answer:

45.75%

Explanation:

When asking for the utilization of the plant, the question is basically referring to how much of its full potential is the plant currently operating at. Therefore this can be calculated by dividing its current output (4,575) by its maximum output (10,000) like so...

4,575 / 10,000 = 0.4575

Now we multiply that by 100 in order to get the percentage.

0.4575 * 100 = 45.75%

Therefore the current utilization of the plant is 45.75%

7 0
3 years ago
The manager of the customer service division of a major consumer electric company is interested in determining whether the custo
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Answer:  Stratified random sampling

Explanation:

Given : The manager of the customer service division of a major consumer electric company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. If there are 4 different brands of Blu-ray players made by the company.

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  • Stratified random sampling is a method of probability sampling in which a researcher divides the entire population into multiple homogeneous groups known as strata and then he randomly select an sample members from each strata for research .
4 0
3 years ago
Why do older kids think they know every thing?
fomenos

Answer:

I have no clue tbh lol they think they are the boss of us

8 0
3 years ago
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The term average means ___.
vichka [17]

Answer: D I got the answer right on connexus

Explanation:

8 0
3 years ago
Analyzing Accounts Receivable Changes The comparative balance sheets of Sloan Company reveal that accounts receivable (before de
lesantik [10]

Answer:

Cash was collected from customers during the year was $ 104,100

Explanation:

Sales revenue = $120,000

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8 0
3 years ago
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