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REY [17]
3 years ago
6

At the present time, Andalusian Limited (AL) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. The

se bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If AL wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)A. 6.09%B. 4.87%C.5.48%D. 7.31%

Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

C.5.48%

Explanation:

Please see attachment

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Answer:

NPV = $55,894.45

Explanation:

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7 0
3 years ago
Imagine that your boss has given you the task of giving a speech at the next staff meeting about new office procedures. What que
Kipish [7]
First and foremost, specifically which topics to cover and how much time to take covering them.
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6 0
2 years ago
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Margarita [4]

Answer:

The correct answer is letter "C": Different choices about the right simplifications to use in economic analysis.

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