Answer:
The new cost of capital if this firm changes capital structure is 1.3
Explanation:
From the provided information:
All equity beta = 1
New D/E ratio = 0.5
Then, the new capital structure with levered beta is given by:
new capital structure = All equity beta *(1 + D/E*(1 - tax rate))
= 1*(1 + 0.5*(1 - 40%))
= 1.3
Therefore, The new cost of capital if this firm changes capital structure is 1.3
This is an unfortunate financial situation that Martha experienced. Her car with a brown (1.body) and black roof color was stolen. She then called the police to have it blotter. The police asked her if she has (2.paid ) her loan since the bank or dealer has a right to (3. confiscate). She confessed that she was unable to pay her duties because the written language was too complicated to (4.understand). A big home-improvement loan is also (5. along) with the car loan. It's difficult for her to pay since the city is suffering from (6.financial crisis). So, she consulted a debt counselor and have the service for free and come up with the(7.options) of having a regular job or pay willingly in full. They both made up a plan that would (8.constitute) a comprehensive budget. Finally, she made a promised to pay (9.small) amount each month to companies she's indebted. They've also talked about comprehensive actions to take when she's facing a (10.similar) scenarios again.
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
Answer:
A bachelor degree is typically earned between 3 and 4 years. Many schools require students to complete about 40 courses or 120 credit hours.
Answer:
This is an example of expertise
Explanation:
Expertise can be seen with the wide range of knowlege. Expertise can be seen in how the knowlege is applied as well.
