Ashley is not happy. (is this the full question?... it looks like it is missing the last sentence
Answer:
aftertax cost of debt =5.63%
Explanation:
fisrt we need to know the formula for the yield to maturity
Yield to maturity (YTM)
YTM= ( I+(F-P)/n ) / ( 0.6P +0.4F)
YTM= (9 + ( 100-102.3) / 11 ) / (0.6*102.3 + 0.4*100)
YTM= 0.0867
YTM= 8.67%
after taxes we have...
8.67% (1-0.35%)
=0.0563
=5.63%
Answer:
The correct answer is letter "C": Increased inventory with decreased payables.
Explanation:
If in a general ledger there is more inventory but fewer account payables it is a clear indication that there has been a mistake recording the operations of a company or there are activities in the company that might be the result of fraud. Accounts payable represent obligations of the company to a third party because of short-term debt incurred. If there is more inventory, the logical is to have more accounts payable recorded.
Answer:
The solution to the given problem is done in excel and an image of the solution is attached.
What is the bond's yield to maturity?
10.35%
What is the bond's yield to call?
10.13%