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mina [271]
2 years ago
9

Several years ago the jakob company sold a $1,000 par value, noncallable bond that now has 20 years to maturity and a 7.00% annu

al coupon that is paid semiannually. the bond currently sells for $925, and the company's tax rate is 40%. what is the component cost of debt for use in the wacc calculation?
Business
1 answer:
vladimir2022 [97]2 years ago
4 0
4.65% is the component cost of the debt for use in the wacc calculation
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The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e
Alja [10]

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

5 0
2 years ago
DAA's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15 percent r
DaniilM [7]

Answer:

This question is incomplete since the required return is not pasted here. I checked on the web and found similar question with the firm's required rate of return is 18 percent. You can use this to solve the question as follows.

Explanation:

Use Dividend Discount Model (DDM) to find the intrinsic value of the stock.

Find the present value of dividends

D3 = 2

PV(of D3) = 2/(1.18^3) = 1.2173

D4 = D3(1+g) = 2(1+0.06) = 2.12

PV(of D4) = \frac{\frac{2.12}{0.18-0.06} }{1.18^{3} }

PV (of D4) = 17.6667/ 1.6430 = 10.7527

Next, sum up the present values ;

= 1.2173 + 10.7527

= $11.97

Therefore, DAA's stock is currently overpriced ,so you should not buy it since it is only valued at $11.97 and not $15.

6 0
2 years ago
Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipmen
Sphinxa [80]

Answer:

d. the complexity of the product.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. The pre-service strategies includes identifying the following target market, design, branding, market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Personal selling also known as face-to-face selling can be defined as a sales technique or strategy in which the salesperson meets with the potential buyer (customer) for the sole purpose of convincing him or her to buy a product.

For Michael, personal selling works better than other forms of promotion because of the complexity of the product i.e high technicalities associated with the product. The product Michael are highly technical and as such would require guidance or explanation on how to safely use them.

4 0
2 years ago
Jennifer has been working with sniffing and session-hijacking tools on her company network. Since she wants to stay white hat—th
Alex17521 [72]

Answer:

The correct answer is A) Passive.

Explanation:

The term white hat on the Internet refers to an ethical hacker, or an IT security expert, who specializes in penetration tests and other methodologies to detect vulnerabilities and improve the security of an organization's communication and information systems. It also refers to hackers who are not aggressive or do not carry out illegal activities. An ethical hacker is a term invented by IBM. It is used to differentiate hackers who act without malice from those that do, which are better known as crackers or black hat hackers.White hat hackers also usually work in groups known as sneakers or snoopers, red equipment, or tiger team.

4 0
2 years ago
Discuss the causes and origins of employment syndrome among the indigenous Zimbabweans
Ierofanga [76]

Answer with Explanation:

"Unemployment" remains to be Zimbabwe's <em>very big challenge</em> in its society. The "employment syndrome" among the indigenous Zimbabweans is caused by several reasons of different origins.

One of the reasons is the country's "social culture." Working is considered a "social pressure" in the country. It doesn't stem from the individual's desire to work. So, this puts pressure unto the person when it comes to helping his family rise up from poverty. When one cannot achieve the desired job to do this, they are being laughed at in the society and <em>this creates more trouble. </em>

Another reason for this is that, the desired job that a person is looking for is "not available" in the country. People have hard time looking for work for many of these workplaces have already been shut down. So, this means that <em>the country's education doesn't coincide with the workforce in the country.</em>

"Lack of democracy" is also one reason. The country has been governed with <em>careless leadership</em>. This perpetuated unemployment because the government uses a <em>dishonest approach.</em> So, the educational issue and other developments in the country<u> cannot be addressed properly</u>.

7 0
2 years ago
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