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
dmitriy555 [2]
3 years ago
10

Pharoah, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 11.0 percent (semiannual payments). Mana

gement wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 9.5 percent, how much will Pharoah pay to buy back its current outstanding bonds
Business
1 answer:
Delvig [45]3 years ago
3 0

Answer:

Pharaoh will have to pay $1,084.47 for every outstanding bond that it retires.

Explanation:

if the market rate is 9.5%, then the price of outstanding bonds is:

PV of face value = $1,000 / (1 + 4.75%)¹⁴ = $522.21

PV of coupon payments = $55 x 10.22283 (PV annuity factor, 4.5%, 14 periods) = $562.26

market price = $1,084.47

You might be interested in
The annual percentage rate on a credit card determines _______.
aliina [53]
It determines the finance charges you pay on your account.
6 0
3 years ago
Read 2 more answers
The human resources perspective of management links motivation theories with _____. a. profit maximization b. efficiencies c. em
Dafna1 [17]

Answer: Employee tasks

 

Explanation: The human resource branch of management focuses on providing better facilities to human capital of the organisation so that better results could be taken out from them.

Motivation theories are conditions that makes employees work harder for better results in their job.

Thus,human resource management tries to make tasks to be performed by employees feasible so that they will give their full potential to it.

5 0
3 years ago
Which of the following statements about the consumers’ responses to rising gasoline prices is correct?a. Because gasoline is a n
s2008m [1.1K]

Answer:

Option (d) is correct.

Explanation:

Gasoline is a normal good for the consumers. So, if there is an increase in the price of gasoline then as a quantity demanded for gasoline decreases.

Also, quantity demanded for gasoline decreases more in long run than in the short run, this is due to the elasticity of the demand curve. As we know that demand curve for gasoline is more elastic in the long run as compared to the short run.

If the demand curve is more elastic then a little change in the price of a commodity or a good tends to large change in the quantity demanded for that good.

7 0
3 years ago
Venezuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issu
Ira Lisetskai [31]

Answer:

$4.67 per share

Explanation:

The computation of the diluted earning per share is shown below:

= (Total income - preference dividends) ÷ ( outstanding shares + diluted shares)

where,

Total income is $50,000

Outstanding shares is 10,000

And, the diluted shares is

Amount paid towards shares = Options issued × Exercise price per share

= 1,000 × 6

= $6,000

And,

Value of options = Amount paid towards shares ÷ Current market price

= $6,000 ÷ $20

= 300

So,

Diluted shares is

= Options issued - value of options

= 1,000 - 300

= 700

So Diluted Earnings per share is

= ($50,000) ÷ (10,000 + 700)

= $4.67 per share

We simply applied the above formula

3 0
3 years ago
Today is the worst day ever.
Tcecarenko [31]

Answer:

first you need to claim yourself first

love yourself drinking water will help you feel good and comfortable be cozy and listen to peaceful song

lots of love

8 0
3 years ago
Read 2 more answers
Other questions:
  • Factor Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total product
    11·1 answer
  • Variable costs change with Group of answer choices changes in target return pricing. changes in fixed costs. changes in the quan
    10·1 answer
  • Your U.S.-based company has recently purchased an old office building where employees are being assigned to work. As you are set
    11·1 answer
  • prepare a financial report that compares what ashley and jason each owns and owes on september 30. make a list of any decisions
    6·1 answer
  • What assumption is made with supply-side economics?
    11·2 answers
  • On December 31 of the current year, Sam Company was merged into Paul Company. In carrying out the business combination, Paul Com
    14·1 answer
  • Corey, the chief financial officer of Maurectric Inc., an electronics company, is also an investor in the stockmarket. As the sh
    14·1 answer
  • Why are most economies in the world today considered mixed economies?.
    9·1 answer
  • What is the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, t
    11·1 answer
  • kari’s boss has offered to pay her for up to 5 hours of overtime today. akari has already been working for 10 hours and is decid
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!