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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

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Answer:

non-directive interview

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4 years ago
Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just comp
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Answer:

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A company that continually adds more features to an existing product to try to appeal to more customers may end up overwhelming
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It can be noted that when the addition of more features to an existing product overwhelm the customers, it is known as feature fatigue.

<h3>What is feature fatigue?</h3>

Feature fatigue simply means when consumers shy away from products that appear to be rich in features.

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5 0
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The risks of vertical integration include all of the following EXCEPT: a. costs and expenses associated with increased overhead
aleksandrvk [35]

Answer: Lack of control over valuable assets

 

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Merck &amp; Co., Inc. is a global, research-driven pharmaceutical company that discovers, develops, manufactures, and markets a
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Find the given attachment

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