A driver borrowed $75,000 from a bank to purchase a tract of land on which to operate his trucking company, securing the debt with a mortgage on the land. The bank promptly and properly recorded its mortgage. A few years later, the driver financed the installation of a truck wash on the land with a $50,000 loan from a finance company, secured by a mortgage on the land. The finance company promptly and properly recorded its mortgage. The driver subsequently defaulted on the bank's mortgage, leaving an outstanding balance on the bank's loan of $60,000. However, the driver continued to make payments to the finance company. The bank brought a foreclosure action, joining the finance company in the proceeding. The jurisdiction provides a statutory right of redemption for lienholders. Does the finance company have any recourse prior to the foreclosure sale to protect its interest?

What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? round to the nearest cent. do not include a dollar sign in your answer. (i.e. if your answer is $432.51, then type 432.51 without $ sign)