I would say D. because a salary s something you get constantly and unless you get a raise it is unchanging.
Answer:
NPV = $1.49 million
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
<em>NPV of an investment: </em>
NPV = PV of Cash inflows - PV of cash outflow
But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:
Step 1: After-tax cost of debt
After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)
= 9%× (1--0.3)=6.3%
Step 2 : Weighted Average cost of capital (WACC)
WACC=( 0.25×6.3%) + (0.75× 13%) =11.325
%
Step 3:Net Present Value (NPV)
PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49 million
Initial cost = $48 million
NPV = 49.49 million - $48 million =$1.49 million
NPV = $1.49 million
Answer:
Option D is the correct answer to this question.
Explanation:
Preferred Stocks on payment are not due. The distributions on the stock shares may or may not be paid depending on the type in the issue. Restrictive Preferred stock agreements do not include regulations on stock listing on the exchange of securities as well as on stock returns. These are and can not be counted as derogatory covenants. The indenture of an organization does not indicate how many preferred shares and bonds it can issue.
Preferred stock with a conversion feature allows holders to switch each share into a stated common stock number.
Other options are incorrect because they are not related to the given scenario.
Answer:
Affirmative action
Explanation:
Affirmative action refers to a positive discrimination whereby policies are made to favour groups or individuals that are known to have been previously discriminated against. It involves trying to correct the wrongs or effects of previous discriminations. So in this case when measures are taken in hiring, recruiting employing and educational remedy to past and present discrimination against members of specific groups, it is referred to as Affirmative Actions. It is aimed at improving employment and educational opportunities for individuals belonging to minority groups and oppressed individuals/groups.
Answer:
It would report 21,778 on interest expense
Explanation:
Because it is the first payment, we can use the compoun interest formula
The rest of the cuota would be amortization of the principal
It is important to <u>do not split the interest in four</u> because the interest are decreasing over the course of the note life. That's because along with the interest accrued during the period World Co. is also paying a portion of the principal