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Bas_tet [7]
3 years ago
10

When the bond sells at par, the implicit €/$ exchange rate at maturity of a Euro/U.S. dollar dual currency bond that pays $651.2

5 at maturity per €1,000, is:________ A) €1.54/$1.00. B) €1.22/$1.00. C) €1.79/$1.00. D) €1/$1.00.
Business
1 answer:
Anna007 [38]3 years ago
4 0

Answer:

€1.54/$1.00

Explanation:

When the bond sells at par, the implicit €/$ exchange rate pays €651.25 at maturity per €1000

651.25/1000= 1/x

Cross multiply

651.25x = 1000

x= 1000/651.25

x= 1.54

Hence the implicit exchange rate is €1.54/$1.00

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11. John rates Peter an average worker, “excellent” on all his performance evaluations. The rest of staff suspects that Peter ge
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6 0
2 years ago
Which of the following is true of brand personalities?
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Explanation:

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4 0
3 years ago
Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equality. It has a before-tax cost o
ioda

Answer:

Raising the Funds through Retained Earnings

WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)

WACC = 14.7(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)

WACC = 5.292 + 0.732 + 3.8628

WACC = 9.89%

Raising New Equity

WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)

WACC = 16.8(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)

WACC = 6.048 + 0.732 + 3.8628

WACC = 10.64%

Difference in WACC = 10.64% - 9.89%

                                  = 0.75%

Explanation:

WACC equals cost of equity multiplied by proportion of equity in the capital structure plus cost of preferred stock multiplied by proportion of preferred stock in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.

In this case, there is need to calculate WACC if funds were raised through retained earnings and WACC if funds were raised through new common stock. Then, we will determine the difference in WACC.

5 0
3 years ago
You have four items on your menu: a veggie sub for $7, a ham sub for $9, a turkey sub for $10, and a steak sub for $13. What is
brilliants [131]

Answer:

$9.5

Explanation:

The median is the middle number in a data. The data has to be arranged in either ascending or descending order.

In the case, our data price, which is $7, $9, $10, and $13. The data is already arranged in ascending order.

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The median price is $9.5

5 0
3 years ago
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