Jiminy's Cricket Farm issued a 30-year, 6.5 percent semiannual bond 9 years ago. The bond currently sells for 108.5 percent of its face value. The book value of this debt issue is $151 million. In addition, the company has a second debt issue, a zero coupon bond with 13 years left to maturity; the book value of this issue is $97 million, and it sells for 62.4 percent of par. The company’s tax rate is 21 percent.
1) what is the total book value of debt?
2) what is the total market value of debt?
3) what is the after tax cost of the 6.5 percent coupon bond?
4) what is the after tax cost of the zero coupon bond?
5) What is the after tax cost of debt?
Answers
Answer:
1 151 million 2 97 million
3 22.785 million 4 20.37 million 5 76.63 million
Related Questions
Justify the role of ethics in the workplace
Answers
The role of ethics in the workplace is leads to satisfied workers who look forward to going to work rather than viewing it as a burden.
What do you understand by the role of ethics?Ethics can be thought of as the rules that direct our behaviour so that we make the best decisions for the benefit of everybody. In order to tell the truth, maintain our word, or assist a stranger in need, we must follow ethical principles.
A company that implements a workplace ethics programme aligns employee behavior. This encourages transparency, collaboration, and trust as a result. Additionally, workers perform better at their professions when they are aware of the expectations of their superiors.
Integrity is among the most crucial working ethics. Additionally, employees grow to feel attached to and devoted to the company.
Therefore, the role of ethics in the workplace is leads to satisfied workers who look forward to going to work rather than viewing it as a burden.
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Which of the following actions is attributed to leadership but not to management? A. Inspiring B. Organizing C. Budgeting D. Planning
Answers
Option A is correct. Actions attributed to leadership rather than management include establishing direction and inspiring.
What is the definition of leadership?"The act of leading a group of individual or organizations." This is how Oxford Dictionary defines leadership. Simply, leadership means taking risks and challenging the status quo. Leaders motivate others to achieve something new and better.
What are the qualities of a good leader?Key Elements of Successful Leadership: Transparency. If the leader is transparent, there will be less challenge from supervisors. Great leaders are confident, trustworthy, focused on building relationships, action-oriented, humble, empowering, honest, and consistent.
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A research study showed that adolescents who watched more than 4 hours of TV per day were more than five times as likely to start smoking as those who watched less than 2 hours a day. The researchers speculate that TV actors’ portrayals of smoking as personally and socially rewarding were an effective indirect method of tobacco promotion.
List the factors that you think cause adolescents to start smoking. (You may select more than one answer. Click the box with a check mark for the correct answer and double click to empty the box for the wrong answer.)
Curiosity
Parents who smoke
Friends who smoke
Seeing teenagers smoke in movies and TV
Boredom
Wanting to look cool
School health classes explaining the harmful effects of smoking\
High cigarette sales taxes
Answers
Answer:
peer pressure
Explanation:
when your friend is convincing u in doing some thing wrong
Curiosity, Friends who smoke, Seeing teenagers smoke in movies and TV and Wanting to look cool are some of the reason of adolescents to start smoking.
What are the cause of smoking?Cigarette smoking is linked to cancer, heart disease, stroke, lung disease, diabetes, and chronic obstructive pulmonary disease, which includes emphysema and chronic bronchiti.
Tobacco use raises the risk of tuberculosis, some eye illnesses, and immune system problems such as rheumatoid arthritis.
Thus, option A, C, D and F are correct.
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Given the following Financial Statement Data: Sales Revenues (50,000), Operating Profit (14,400), Net Income (9,555), Total Current Assets (70,000), Total Assets (159,000), Total Current Liabilities (26,000), L-T Debt (43,000), Total Equity (91,400), Depreciation (4,000), Dividend Payments (2,250). Based on the above figures, the company's capital structure (defined as the sum of total debt outstanding and total stockholder's equity) consists of what percentages of debt and equity? (The percentages of total capital invested that are debt-financed and equity-financed are among the factors used to determine a company's credit rating, as explained in the Help section for the Comparative Financial Performances presented on p.7 of the GLO-BUS Statistical Review.)
Answers
S
O
R
R
Y
SORRY
sorry
soryy
sorry
1. The executive summary of a project report shall concentrate on a: Major project inputs and outputs: b. The degree of reliability of the data c. The margin of error in terms of uncertainty and risk The project design c/ All of the following
Answers
All the given options are part of the project management that happens in the company or a firm.
What is an executive summary of a project?An executive summary in the project the executives is a synopsis of the most basic data of your undertaking proposition. It's beginning and end that administration has to know when they land on your undertaking before they audit venture plan.
The management included "triangle" of extension, time, and cost has been illuminating undertakings starting from the primary colleague employed to achieve a task. In the essential arrangement of a triple limitation, one of three components can oblige an undertaking.
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In which situation would a savings account be the best investment to earn interest?
O saving for retirement in 20 years
O saving to buy a new car in three years
O saving to buy a new house in seven years
O saving to easily access the money when needed
Mark this and return
Save and Exit
Next
Answers
The situation in which a savings account would be the best investment to earn interest is: D) saving to easily access the money when needed.
What is saving account?A savings account is a good choice if quick access to the money is more important than maximizing profits. Comparing savings accounts to other investment alternatives like stocks, bonds, or mutual funds, lower interest rates are often offered by savings accounts.
liquidity
They do however offer and security, making them a viable option for short-term savings objectives or emergency funds when having access to cash is the main need.
Therefore the correct option is D.
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Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 16%. The project would provide net operating income in each of five years as follows:
Sales $ 2,863,000
Variable expenses 1,014,000
Contribution margin 1,849,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $ 781,000
Depreciation 583,000
Total fixed expenses 1,364,000
Net operating income $ 485,000
15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project’s actual simple rate of return? (Round your answer to 2 decimal places.)
Answers
Answer:
The initial investment is $2,915,000. The annual net operating income is $485,000. The project's simple rate of return is the annual net operating income divided by the initial investment.
The variable expense ratio is 45%, which means that the variable expenses are $2,863,000 x 45% = $1,288,350.
The contribution margin is $2,863,000 - $1,288,350 = $1,574,650.
The fixed expenses are $781,000 + $583,000 = $1,364,000.
The net operating income is $1,574,650 - $1,364,000 = $210,650.
The simple rate of return is $210,650 / $2,915,000 = 7.22%.
Therefore, the project's actual simple rate of return is 7.22%.
38. A log book used to record information about visitors who call in an organization is called A. Complimentary card B. Telephone directory C. Telephone pad D. Visitor's register E. Visitor's request form
Answers
A logbook used to record information about visitors who call in an organization is called an Option D. Visitor's Register.
A visitor's register is an essential tool for maintaining security and professionalism in a workplace. It helps in keeping track of the people entering and leaving the premises, which aids in monitoring the flow of visitors and ensuring their proper identification.
A visitor's register typically includes columns for the visitor's name, contact details, purpose of visit, time in, time out, and the name of the person they are meeting. This information is valuable in case any follow-up is required or for emergency situations where it's crucial to know who is on the premises.
In contrast, a complimentary card (A) is a business card exchanged during formal introductions. A telephone directory (B) is a listing of telephone numbers organized by name or business. A telephone pad (C) is a notepad used for taking messages or notes during phone calls, and a visitor's request form (E) may be a document required to be filled out by visitors for specific purposes or access.
In summary, a visitor's register (D) is the correct term for a log book used to record information about visitors who call an organization. It helps maintain security, monitor visitor flow, and ensure proper identification of guests. Therefore, the correct option is D.
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Do you know the answer?
Answers
Answer:
no
Explanation:its to blurie
how a manager or coach could use the process of self – fulfilling prophecy to enhance an individual’s performance.
Answers
The manager would use self fulfilling prophecy by letting the team know that they are expecting them to have good results .
How a manager could use self fulfilling prophecyThe manager could be able to increase productivity by using this method. A way to use this would be by letting them known that what is expected is positive results. This would raise their chances of doing better because they already know that it is expected.
The manager could also use a raise in the pay of the workers as a way of making this to happen.
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Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and a beta of 1.8. The expected market rate of return is 9% and the risk-free rate is 5%. Security __________ would be considered the better buy because
Answers
Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return
Which characteristic is not reflective of a successful entrepreneur?
a.) Self-conscious
b.) Self-determination
c.) Innovative
d.) Creative
Answers
Answer:
a.) Self-conscious
Explanation:
you run a nail salon. fixed monthly cost is $5,806.00 for rent and utilities, $5,924.00 is spent in salaries and $1,174.00 in insurance. also every customer requires approximately $3.00 in supplies. you charge $125.00 on average for each service. you are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,627.00, salaries to $6,295.00 and insurance to $2,022.00 per month. cost of supplies will increase to $8.00 per service. however you can now charge $146.00 per service. at what point will you be indifferent between your current location and the new location?
Answers
It makes no difference where the nail salon is located with 378 clients.
Describe insurance.Insurance is a legal agreement, evidenced by a policy, under which a policyholder receives financial security or compensation from an insurance provider against losses. The company pools the risks of its clients in order to make payments to the insured more manageable.
Calculation:
Giving the following information:
The fixed monthly cost is $5,806.00 for rent and utilities
$5,924.00 is spent on salaries.
$1,174.00 in insurance.
Every customer requires approximately $3.00 in supplies.
You charge $125.00.
New location:
Fixed costs in rent and utilities= $10,627
Salaries= $6,295.00
Insurance to $2,022.00 per month.
The cost of supplies will increase to $8.00 per service.
The selling price = $146.00 per service.
Old location gross profit equals contribution margin*Q minus fixed costs
Gross profit old location= (125-3)*Q - 12904
Gross profit at new locations is equal to contribution margin*Q minus fixed costs.
Gross profit new location= (146-8)*Q - 18944
122*Q-12904 = 138*Q - 18944
6040 = 16*Q
Q = 377.5
= 378 costumers.
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why do you think isd process is a useful model. give reasons for your answer
Answers
Answer:
IDrk...
Explanation:
ISD can be thought of as a roadmap that helps to ensure the learners and their organization achieve their learning and performance goals through formal, nonformal, and informal environments.
How do consumer preferences shape the market for livestock?
Answers
Answer:
The consumer preference is to have a meat that is leaner, and an equal amount of fat distributed throughout the meat.
Explanation:
This means that the cuts of meat that fit this description can be sold at a higher price than others.
What is the yearly cost per thousand of a whole life policy with a face value of $25,000 if the annual premium is $567?
Answers
Answer:
$22.68
Explanation:
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Mazu Mavuso is a 43-year-old South African resident who was employed by Veg & Fruit Limited, a South African company, until 30 November 2022. On 30 November 2022, Veg & Fruit Limited ceased its operations and the pension fund that Veg & Fruit Limited established for its employees also closed down. The Veg & Fruit Limited pension fund paid out R80 000 to Mazu Mavuso during the 2023 year of assessment. All Mazu Mavuso's pension fund contributions have been deducted in the determination of his taxable Income. Mazu Mavuso also decided to join a retirement annuity fund, to which he made a total contribution of R7 000 during the 2023 year of assessment. For the 2023 year of assessment, Mazu Mavuzo's receipts and expenses were as follow: Salary Director's fees earned Local dividends from South African companies Local interest from a non 'tax free investment' Pension fund contributions at 6.5% of his salary Retirement annuity fund contributions Qualifying medical expenses paid Donation to a qualifying section 18A Public Benefit Organisation R 720 000 110 000 45 000 24 500 ? 7 000 61 630 6 000 Calculate Mazu Mavuso’s taxable income for the 2023 year of assessment. (25 marks) 1.2) Calculate Mazu Mavuso’s total normal tax liability for the 2023 year of assessment. Assume that Mazu Mavuso had a taxable income of: • R770 900 before any retirement fund lump sum withdrawal benefits. • R843 900 after any retirement fund lump sum withdrawal benefits. (17 marks) Competency Framework Reference: E1.2 Interpretation of tax legislation b) Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation. E1.3 Application of tax legislation to calculate tax obligation a) Analyse the taxpayer’s tax profile. c) Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies.
Answers
Explanation:
to calculated this question to solve
Which of the following best describes a Trial Balance?
A. It is a list of balances in the book.
B. It is a special account.
C. It shows the financial position of the business.
D. It shows all the entries in the books.
Correct answers will be MARK AS BRAINLIEST
Don't answer if you don't know
Answers
It is list of balances in the book
Trial balance is recorded in form of listIt includes all the balances present at different accounts of any individualOption A is correct
Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand function? A demand function? Explain briefly. Would it be possible to use a focus group to generate data that could be used to estimate a demand function that includes both price and income as explanatory variables?
Answers
The information can be used to estimate an inverse demand function and a demand function as E. the demand curve, and the inverse demand curve can be calculated from it.
A demand function with price and income as explanatory variables can be generated from the focus group by capturing buying pattern data at different prices and levels of income.
It should be noted that a demand function simply shows the relationship that exists between the quantity demanded and price. Based on the question, using a demand function can be computed easily since quantity is a function of price.
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If a website is designed with responsive design concepts, then
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If a website is designed with responsive design concepts, then it appears correctly on any device regardless of screen size.
A well-designed website will be easy to use and navigate, with clear and consistent branding throughout. It will also have a strong visual identity, with carefully selected imagery and typography that reinforces the overall message.
The individual design concepts on each page need to work together to create a cohesive whole. The layout should be easy to follow, with a clear hierarchy of information.
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an order to stay on track for long term financial goals, money for emergency spending should be taken first from your Osavings account. discretionary money. fixed expense money. O net income.
Answers
Answer: discretionary money
Explanation:
Edge 2021
To stay on track for long-term financial goals, money for emergencies should be taken first from your discretionary money. The correct option is b.
What is discretionary money?Discretionary income is the amount of money left for an individual to spend or save after paying taxes and for personal needs, such as food, lodging, and clothes. Discretionary income includes money spent on luxury goods, holidays, and non-essential goods and services.
Since discretionary income is the first to decline amid job loss or reduction in wages, companies selling discretionary products continue to suffer the most during economic downturns and recessions. Discretionary spending is a significant part of a balanced economy. Citizens spend money on such items as travel, movies, and consumer goods only if they have the funds to do so.
Many people purchase luxury items using credit cards, but through personal debt is not the same as getting discretionary income.
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Are marketing and sales the same in marketing
Answers
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
At the end of its annual accounting period, the company must make three adjusting entries.
a. Accrue salaries expense.
b. Adjust the Unearned Revenue account to recognize earned services revenue.
c. Record services revenue earned for which cash will be received the following period.
For each of these adjusting entries, indicate the account to be debited and the account to be credited.
a. Debit
a. Credit
b. Debit
b. Credit
c. Debit
c. Credit
Answers
There are four different sorts of accounts that require adjusting. They are deferred revenues and expenses as well as accumulated revenues and expenses. Money earned during one accounting period but not received until another is referred to as accrued revenue.
What is accounting?Accounting is the activity of keeping records of a company's financial transactions. Journal entries are how the accountants condense the transactions. In bookkeeping, these entries are utilized.
According to the rules set forth by the auditors and other governing agencies, the accountants create the books of accounts. The accountants may adhere to IFRS (International Financial Reporting Standards) or generally accepted accounting principles (GAAP)
An analyst can gain a good picture of the company's financial status by reading the book of accounts. Therefore, the book of accounts is required to determine the firm valuation for publicly traded corporations.
The financial statements of a big company provide an overview of its operations, financial situation, and cash flows during a specific time period.
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How could managers use increased worker flexibility and diligence to increase the competitiveness of their manufacturing sites
Answers
Explanation:
In order to increase the flexibility and diligence of workers in order to increase the competitiveness of their manufacturing sites, it is ideal for management to offer working conditions that allow employees greater benefits, such as greater mobility, with a layout that includes the correct flow between people, products and materials.
It is also ideal to implement technologies that reduce the bureaucracy both at work and facilitate communication and carrying out tasks.
Mobility also includes remote work using technology.
These are strategies that help to make work more flexible and, consequently, increase innovation in work and worker motivation.
The correct way in which the flexibility of the workers in an organization can be increased is by adapting to suitable principles of business management as per the size and scale of the business.
This will also help the manager to increase the competitiveness in the market and also beat the need for optimum level of production in the organization.
Principles of Business Management. The principles of business management as given by economist Henry Fayol are a great source for how the business can be run efficiently and effectively using the resources available.There can be chain level management that can be followed to achieve specialization of work and bring in additional capital or workforce to divide the work uniformly. Manufacturing can also be increased by doing departmentalization in management to save up costs and achieve optimum utilization of resources.Hence, a manager may adapt to different principles of management to increase competitiveness and effectiveness in the level of manufacturing.
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During the spring and summer of 2016, when gasoline prices were rising quickly, politicians in several countries proposed and a moratorium on some or all gasoline taxes to help consumers. In the Uniter States, one of Republican candidate for president, proposed suspending the federal gasoline tax of $0.4 for the summer, when demand tends to be high. An active candidate for the Democratic nomination for president, also pushed the plan. How would these short-run policies have affected the prices on consumers if the price had been enacted?
Answers
Answer:
consumers would find it cheaper to buy gasoline
Explanation:
In the short run a tax cut or tax suspension as we have In this question is able to increase demand because it increases peoples disposable income. This tax cut of $0.4 would remove burden on gasoline consumers. By removing the tax on gasoline the price of gasoline would become lower and consumers would find it easier and cheaper to purchase
if you were living in a world without a financial system ,how would you make provisions towards your retirement.
Answers
From the following trial balance of G.foot after his first year trading. You are required to draw up an income statement for the year ending 30 june 2019
Answers
Drawing up an income statement for the year ending 30 June, 2019, for G. Foot Company shows a net income of $65,600.
G Foot Company
Income StatementFor the Period Ended June 30, 2019
Sales $266,000
Purchases 154,000
Ending inventory (18,000)
Cost of goods sold 136,000
Gross profit $130,000
Expenses:
Rent 3,800
Lighting and heating expenses 700
Salaries and wages 52,000
Insurance 3,000
Sundry expenses 300
Motor running expenses 4,600 $64,400
Net income $65,600
Question Completion:A statement of financial position is not required.
Trial balance as at 30 June 2012
Dr Cr
Sales 266,000
Purchases 154,000
Rent 3,800
Lighting and heating expenses 700
Salaries and wages 52,000
Insurance 3,000
Buildings 84,800
Fixtures 2,000
Accounts receivable 31,200
Sundry expenses 300
Accounts payable 16,000
Cash at bank 15,000
Drawings 28,600
Vans 16,000
Motor running expenses 4,600
Capital 114,000
Totals 396,000 396,000
Ending inventory at June 30, 2019, was $18,000
Thus, an income statement for the year ending 30 June 2019, for G. Foot Company shows a net income of $65,600, which is the difference between the sales revenue and the costs incurred for the year.
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Amber works as an insurance claims agent in charge of assisting policyholders when an accident has occurred. What task might Amber perform as part of her job?
A. buying and selling stocks for her clients
B. running an analysis of a small business's spendings
C. recording items damaged in a house fire
Answers
Answer:
the answer would be B
Explanation:
please tell me if im wrong or right
Answer:
B
Explanation:
5. If you wanted to show how many employees at your office ride a bicycle to work in comparison to the
number of employees who drive a car, take public transportation, or walk, what visual would be best?
Answers
Answer:
a bar graph
Explanation:
A bar graph may be defined as a visual representation of the categorical data or information which is represented by rectangular shape bars with their lengths or height proportional to the values they represent. A bar graph is also known as bar charts.
The rectangular bars can be plotted either vertically or horizontally.
In the context, a bar graph or a bar chart would be the best option to represent the number of employees who ride a bicycle and come to office and compare them to the number of employees who takes a public vehicle, drives a car or even come to office by walking.
21. Suppose the AD curve is given by P 400-Y and the SRAS curve is given by P100+ 2Y2, for P the price
level and Y' the amount of real GDP in trillions (which is defined by the classic GDP accounting identity). Potential
real GDP (i.e., LRAS) is $17 trillion.
A. Solve for the equilibrium price level and real GDP. What is the size of the output gap? (5 points)
B. Draw the AS-AD model using the above equations as your guide. You don't need to graph exact points, but
at least make sure the SRAS, AD, and LRAS curves have the shapes associated with their equations/data.
(2.5) points
C.
Suppose the federal government is running a deficit. Demonstrate the effect of deficit spending within your
diagram. (2.5 points)
D.
Suppose the Federal Reserve implements Open Market Operations by purchasing bonds from banks such at
AD shifts to P800-Y. What is the new equilibrium price level and real GDP? What is the size of the
output gap? (5 points)
E.
Given your answer to part D, did the Federal Reserve implement too much, too little, or just the right
amount of bond purchases? Explain your answer. (5 points)
F. Suppose the combined effects of part D and E linger, and the federal government continues the need to
deficit spend. What effect will this have on the price level and real GDP, and how will the Federal Reserve
likely need to respond to these effects? (5 points)
Answers
B. The graph should show the AD curve sloping downward and the SRAS curve sloping upward, with the LRAS curve being vertical at $17 trillion. The equilibrium point where the AD and SRAS curves intersect should be labeled.
C. Deficit spending shifts the AD curve to the right, which increases the equilibrium price level and real GDP. In the graph, this is shown as the AD curve shifting to the right.
D. The new equilibrium price level and real GDP can be found by setting the new AD curve equal to the SRAS curve, which yields P=500 and Y=150. The output gap is $2 trillion.
E. The Federal Reserve implemented too much bond purchases because the output gap decreased by more than the potential output gap of $17 trillion. This could lead to inflation and other economic problems.
F. Continued deficit spending could lead to inflation, which would require the Federal Reserve to increase interest rates to slow down the economy. If the Federal Reserve implements contractionary monetary policy, the AD curve would shift to the left, which would decrease the equilibrium price level and real GDP.
A. By adjusting the AD curve to equal the SRAS curve and figuring out P, the equilibrium price level can be discovered. This results in P=300 and Y=50 for the equilibrium real GDP. The $17 trillion potential real GDP is divided by the $1 trillion actual real GDP to determine the output gap. The output shortfall is therefore $16.95 trillion.
B. The LRAS curve should be vertical at $17 trillion, with the SRAS curve sloping upward and the AD curve sloping downward. Label the equilibrium location where the AD and SRAS curves meet.
C. Deficit spending causes the AD curve to slant to the right, raising both the real GDP and the equilibrium price level. This is depicted in the graph as the AD curve.
D. By making the new AD curve equal to the SRAS curve, which results in P=500 and Y=150, it is possible to determine the new equilibrium price level and real GDP. The $2 trillion output gap.
E. The output gap shrunk more than the $17 trillion prospective output gap as a result of the Federal Reserve's excessive asset purchases. Inflation and other economic issues could result from this.
F. Continually running a deficit could cause inflation, which would force the Federal Reserve to raise interest rates in order to slow the economy down. The AD curve would shift to the left if the Federal Reserve adopted a contractionary monetary policy, lowering the equilibrium price level and real GDP.
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