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Fynjy0 [20]
3 years ago
9

The company has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8

. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6%, and sells for 97% of par. The second issue has a face value of $40 million, a coupon rate of 6.5%, and sells for 108% of par. The first issue matures in 21 years, the second in 6 years. Suppose the most recent dividend was $3.25 and the dividend growth rate is 5%. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21%. What is the company’s WACC?
Business
1 answer:
Juli2301 [7.4K]3 years ago
7 0
I’m not sure about this question. Try doing an image search of searching key terms
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The Information Technology Infrastructure Library (ITIL) is a document of operational rules help desk organizations must follow
murzikaleks [220]

Answer: B. False

Explanation:

Information Technology Infrastructure Library (ITIL) is a framework of best practices for delivering IT services to businesses and management generally. The main aim of ITIL is to focus IT in managing the needs of a business.

ITIL’s systematic approach to IT service management can help businesses manage risk, strengthen customer relations, establish cost-effective practices, and build a stable IT environment that allows for growth, scale and change.

7 0
3 years ago
If a country's saving rate increases, then in the long run a. productivity and real GDP per person are both higher. b. productiv
labwork [276]

Answer:

A) productivity and real GDP per person are both higher.

Explanation:

In the long run, an increase in savings will increase total investment. If total investment increases, then the productive capacity (productivity) and the aggregate supply should also increase. An increase in investment is the best way to guarantee a sustainable increase in aggregate demand without increasing the inflation rate.

When productivity increases, the real GDP per capita also increases.

3 0
3 years ago
A bond has a Duration (not Modified) of 4.2 years and is priced at 99.50. Its yield is 3%. How much will its price change if the
saw5 [17]

Answer:

1.22%

Explanation:

The modified duration of the bond gives an indication of change in price due to a 1% change in the yield to maturity,hence, the bond modified duration is computed using the formula below:

modified duration=Macaulay Duration/(1+YTM)

Macaulay Duration=4.2

YTM(initial)=3%

modified duration=4.2/(1+3%)= 4.08  

That for 1% change in yield to maturity price would change 4.08%

0.3% change in yield(3.3%-3%)= 4.08%*0.3%=1.22%

4 0
3 years ago
why might an individual pursue a career in education and training career cluster pursue a career helpppppp
slava [35]

Answer:

There are different kind of careers that one can pursue in life; in order to choose a particular career, one has to consider some important factors.

The most important factor to consider in this case is your interest and passion. What are your interests? Which type of work can you do continuously every day and you will not be bored? That is the first thing you must figure out.

So, for an individual to consider pursuing a career in the education and training cluster, that person must have passion for imparting knowledge, he must be someone, who derive joy from teaching people and making them better than he met them.

Other important factors that must be considered include the following:

Suitable skills: you must have inborn talents that can be used in training people. Talents such as ability to express yourself clearly will help you in the education sector.  

Academic qualifications: depending on the specific level of education, where you want to get involved, you must be prepared to get the required qualifications. For instance, to teach at a University level, you must have a doctorate degree in your field.

Job availability: another factor that you must consider is availability of jobs in your area of interest. Is teaching job easily available in your environment?

Income: The amount of money you can possibly earn as a teacher is also very important. You need to investigate how much you can earn as a teacher and decide if you are comfortable with the amount or not before you go ahead.

6 0
3 years ago
Taxes can be justified if the government uses the revenue to (i) provide public goods such as national defense. (ii) clean up ne
nevsk [136]

Answer:

All of the above

Explanation:

Taxes are involuntary fees levied on individuals or corporations and enforced by government entity whether local or national in order to finance government activities. Taxes help in funding public works like medical research, national defense, water pollution etc.

7 0
3 years ago
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