Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a new oilfield services operation in the Permian Basin. This project would require an outlay of $50 million.
Suppose that PUMP hires Moody’s to assess the company’s credit quality if it were to issue the bonds. Moody’s advises PUMP that it would rate its bonds as Baa.
Managers at PUMP consider issuing a 10-year bond. Currently, the yield on a U. S. Treasury bond with about 10 years to maturity is 1.46%.
Estimate the required rate of return for the bond that PUMP managers are considering.
a. 1.46%
b. 3.86%
c. 5.40%
d. 8.95%
e. 1.93%
Answers: 1
Business, 21.06.2019 21:20
Vital industries manufactured 2 comma 200 units of its product huge in the month of april. it incurred a total cost of $ 121 comma 000 during the month. out of this $ 121 comma 000, $ 46 comma 000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. ryan had no opening or closing inventory. what will be the total cost per unit of the product, assuming conversion costs contained $ 10 comma 900 of indirect labor?
Answers: 1
Business, 22.06.2019 00:50
Suppose that: 1. malaysia requires 1 hour of labor to produce 1 pound of rice and 2 hours of labor to produce 1 pencil; 2. indonesia requires 2 hours of labor to produce 1 pound of rice and 4 hours of labor to produce 1 pencil; 3. each country has 10,000 hours of labor to allocate between the production of rice and pencils; and 4. in autarky, malaysia consumes 5,000 pounds of rice and 2,500 pencils. which country has an absolute advantage in rice production? in pencil production? which country has a comparative advantage in rice production? in pencil production? will trade between the two countries be mutually beneficial?
Answers: 1
Business, 22.06.2019 02:30
The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.
Answers: 1
Business, 22.06.2019 13:50
Which one of the following statements is true? ddt does not prevent disease from passing from agricultural animals to humans. cost was a major factor in the united states government's decision to ban ddt. many african governments concluded that the potential long-term health effects of ddt were not as serious as the immediate problem of insect control. ddt cannot accumulate in the fat of animals. the ddt ban in the united states has made it very difficult to control agricultural insect pests.
Answers: 3
Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services ind...
Engineering, 03.03.2020 20:00
Chemistry, 03.03.2020 20:00
Health, 03.03.2020 20:00
Mathematics, 03.03.2020 20:00
Computers and Technology, 03.03.2020 20:01
Business, 03.03.2020 20:01
Mathematics, 03.03.2020 20:01
Mathematics, 03.03.2020 20:01
Health, 03.03.2020 20:01
Mathematics, 03.03.2020 20:01