1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
postnew [5]
3 years ago
15

Spartans has 6.5 percent bonds outstanding that mature in 18 years. The bonds pay interest semiannually and have a face value of

$1,000. Currently, the bonds are selling for $985 each. What is the firm's pretax cost of debt
Business
1 answer:
sesenic [268]3 years ago
8 0

Answer:

The answer is 6.64%

Explanation:

The coupon payment is semiannual, meaning it is being paid twice a year.

N(Number of years/Number of periods) = 36(18 years x 2)

I/Y(Yield-To-Maturity) = ?

PMT(coupon payment) = $32.5 [(6.5%/2) x $1,000]

FV(Future value/Par value) =$1,000

PV(present value or market value) = $985

Now to solve this, lets use a financial calculator (e.g Texas BA II plus)

N= 36; PV = -985; PMT = $32.5; FV = $1,000; CPT I/Y = 3.32%

3.32% is for semiannual. Therefore annual pretax cost of debt is 6.64%

You might be interested in
You decide to invest in a period annuity that offers 4.5% APR compounded monthly for 20 years. How much money will you need to i
USPshnik [31]
$553,229.03 this is the answer for APEX
7 0
3 years ago
A(n) _____ refers to a situation where a publicly traded company is purchased and then taken off the stock market.
dalvyx [7]
Leveraged buyout/////////////////
4 0
3 years ago
Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors sent out an email cont
romanna [79]

Answer:

Downward communication

Explanation:

Downward communication in a formal structure is the flow of information in terms of orders, appreciation, encouragement from higher authority to subordinates across the organization.

Upward communication in the form of feedback and problems flow from lower level employees to upper level. Here, the board of directors are top level employees who have passed the message to the employees to raise the level of service. This is a form of downward communication.

4 0
4 years ago
Sheridan Company sells merchandise on account for $6400 to Carla Vista Company with credit terms of 2/10, n/30. Block Company re
Aliun [14]

Answer: $4,508

Explanation:

Companies usually give discounts with credit terms to encourage Receivables to pay faster.

In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.

They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.

So calculating for that would be,

= (6,400 - 1800) (1 - 0.02)

= $4,508

The amount of the check is $4,508

8 0
3 years ago
Read 2 more answers
Max is designing a symbol for Clean Glow, a company that produces cleaning supplies. Once it is completed, the symbol will be le
steposvetlana [31]

Answer:

A.

Explanation:

A trademark is a sign capable of identifying and distinguishing in the marketplace the products of one enterprise from those of other enterprises.  The term “products” encompasses both goods and services.

The trademark can be different from the company business registration. A trade name cannot be registered as a trademark unless it also functions as a trademark.

TYPES OF TRADEMARKS :

-Trade marks: to distinguish goods

-Service marks: to distinguish services

-Collective marks: to distinguish goods or services by members of an association

-Certification marks

-Well-known marks: benefit from stronger protection

-Trade name vs. Trade mark

5 0
3 years ago
Other questions:
  • Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 91,000 shares of $5 par common stock. Dur
    5·1 answer
  • 5. Meredith is stuck in the airport on a long layover while traveling for work. She sees two Wi-Fi’s she can log onto: one says
    10·2 answers
  • Which of the following statements is correct?
    7·1 answer
  • At December 31, Riverbed Corporation reports net income of $454,000. Prepare the entry to close net income. (Credit account titl
    10·1 answer
  • Capital Chemicals Corp. recently faced a legal hassle following which many process operators resigned voluntarily. The company f
    13·1 answer
  • Briny Sail Makers manufactures sails for sailboats. The company has the capacity to produce 35,000 sails per year and is current
    8·1 answer
  • Stephen runs a pet salon. He is currently grooming 130130 dogs per week. If instead of grooming 130130 ​dogs, he grooms 131131 ​
    13·1 answer
  • The following costs result from the production and sale of 4,900 drum sets manufactured by Tight Drums Company for the year ende
    8·1 answer
  • if the residents threaten ' to resort to action' if the council does not adress the problem within 14 days time What do you thin
    12·1 answer
  • Economic fine-tuning is the (usually frequent) use of Group of answer choices fiscal policy that both balances the budget and co
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!