This problem has been solved!
see the answer
currently, warren industries can sell 15-year, $1,000 par value bonds paying annual interest at a 12% coupon rate. as a result of current interest rates, the bonds can be sold for $1,010 each; flotation cost of $30 per bond will be incurred in this process. the firm is in the 40% tax bracket.
a. find the net proceeds from sale of the bond, ^{d{n}} .
b. show the cash flows from the firm’s point of view over the maturity of the bond.
c. calculate the before-tax and after tax costs of debt.
d. use the approximation formula to estimate the before tax and after tax costs of debt
e. compare and contrast the costs of debt calculated in parts c and d. which approach do you prefer? why?
Answers: 1
Business, 22.06.2019 11:00
On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.
Answers: 1
Business, 22.06.2019 17:30
You should do all of the following before a job interview except
Answers: 2
Business, 22.06.2019 19:00
The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.
Answers: 1
Business, 22.06.2019 21:00
Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?
Answers: 3
This problem has been solved!
see the answer
currently, warren industries c...
see the answer
currently, warren industries c...
Social Studies, 29.03.2021 02:20
Mathematics, 29.03.2021 02:20
Chemistry, 29.03.2021 02:20
English, 29.03.2021 02:20
Mathematics, 29.03.2021 02:20
Mathematics, 29.03.2021 02:20
Mathematics, 29.03.2021 02:20