All categories

3 years ago

the interest rate that determines the amount of cash interest paid each interest date is referred to as the

Business

1 answer:

viktelen [127]3 years ago

5 0

Answer:

Stated interest rate

Explanation:

The stated interest rate is the rate of interest in which the value of the cash interest that has to paid on each date of interest

The value of the cash interest paid could be determined by applying the following formula

= Face value of the securities × Stated interest rate

Therefore as per the given situation, the stated interest rate is the answer and the same is to be considered

You might be interested in

If the price elasticity of demand for a product is unity, a decrease in price will:

Nonamiya [84]

Answer:

increase the quantity demanded but decrease total revenue.

6 0

3 years ago

Read 2 more answers

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

3 years ago

In 2001, puerto rico enacted a law that requires specific labels on cement sold in puerto rico and imposes fines for any violati

Nataly_w [17]

The Dormant Commerce Clause is not found in the Constitution, however, it allows the US federal government to regulate commerce within the states, US territories, and international commerce. Therefore, When any state law contrasts with the Commerce Clause, the dormant commerce clause takes effect. Now in this situation, Puerto Rico is restrained from enforcing any laws concerning commerce, since it is still under "US territories, the control to exercise such is left to the US government. So, based on this facts, I will say YES the Puerto Rican law broke the dormant commerce clause. Puerto Rico as a US territory does not have the power to regulate the cement labels because this law concerns commerce.

7 0

3 years ago

What is the purpose of database normalization in tables?

Alex Ar [27]

Answer:

This includes creating tables and establishing relationships between those tables according to rules designed both to protect the data and to make the database more flexible by eliminating redundancy and inconsistent dependency.

6 0

3 years ago

State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate educ

saul85 [17]

Answer:

1. positive externalities

2. educational credit for the market failure

3. redistribution

4. failure to maximize the family utility

Explanation:

There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.

Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.

Like suppose the government can support and solve any educational credit market failure by just offering some loan guarantees for the students while letting them chose to receive education or not.

Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.

And finally, government redistributes the poor families through the progressive taxation or the offerings of free education without any mandating them.

8 0

3 years ago