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Pavel [41]
4 years ago
5

Bourdon Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and cu

rrently sell for 106.8 percent of par.
What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
jekas [21]4 years ago
7 0

Answer:

The current yield on the bonds is 5.99%

Explanation:

Current yield = Annual coupon payment / Price Current yield

= $64 / $1,068

Current yield = 0.0599, or 5.99%

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Commercial Construction Builders has a beta of 1.34, a dividend growth rate of 2.1 percent for the foreseeable future, a stock p
Effectus [21]

Answer:

10.412%

Explanation:

The computation of the average cost of equity of the firm is shown below;

The Cost of equity as per CAPM is

= risk free rate + beta × (market rate - risk free rate)

= 4.2 + 1.34 × (12.8 - 4.2)

= 15.724%

Now the Cost of equity as per growth model is

= (D1 ÷ Current price) +Growth rate

= [0.45 ÷ 15] + 0.021

= 5.1%

Now the Average Cost of equity is

= (15.724 + 5.1) ÷ 2 2

= 10.412%

7 0
3 years ago
Bonita Industries had 205000 shares of common stock, 19100 shares of convertible preferred stock, and $1496000 of 5% convertible
s2008m [1.1K]

Answer:

EPS is $2.8 per share

Diluted EPS is $2.4 per share

Explanation:

Basic Earning per share is calculated dividing Earning for the year excluding preferred dividend by weighted average number of shares.

Basic EPS = (Net Income - Preferred dividends) / Weighted Average numbers of share

Basic EPS = ($592,000 - ( 19,100 x $0.9 ) / 205,000 = $2.8 per share

Diluted earning per share is calculated by adjusting all the convertible share options or securities in the outstanding share.

Diluted EPS = (Net Income - Preferred dividends) / Diluted numbers of share

Diluted EPS = ($592,000 - $17,190) / ( 205,000 + 39,000 )

Diluted EPS = $2.4 per share

All  the option given are inconsistent with data given.

8 0
3 years ago
Which feature provides the capability of setting a form field at a desired location in a form and restricting its movement?
Sergio039 [100]

Answer:

A

Explanation:

5 0
2 years ago
Draw five sector of macroeconomic model​
solong [7]

Answer:

Here's my Macroeconomic model.

Explanation:

Thus, the five-sector model includes (1) households, (2) firms, (3) government, (4) the rest of the world, and (5) the financial sector. The financial sector includes banks and non-bank intermediaries that engage in borrowing (savings from households) and lending (investments in firms).

8 0
3 years ago
Marcy left a large Fortune 500 company to go to a small start-up technology firm. Earlier in her career, Marcy wanted a high sal
MrRa [10]

Answer: Maslow's hierarchy of needs

Explanation:

Maslow's hierarchy of needs is referred to as or known as a theory which was proposed by the American psychologist Abraham Maslow, that tends to put forth the notion/idea that individuals are usually/mostly motivated by the following five categories of need, i.e. safety,  physiological, esteem, love, and also self-actualization.

3 0
3 years ago
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