subject
Business, 09.03.2020 21:29 koshh4

Sandy has a choice between purchasing $5 comma 000 in Treasury bonds paying 4.0% interest or purchasing $ 5 comma 000 in BB-rated corporate bonds with a coupon rate of 7.2%. What is the risk premium on the BB-rated corporate bonds?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 11:10
Which feature is a characteristic of a corporation?
Answers: 1
question
Business, 22.06.2019 14:30
Your own record of all your transactions. a. check register b. account statement
Answers: 1
question
Business, 22.06.2019 19:00
All of the following led to the collapse of the soviet economy except a. a lack of worker incentives. c. inadequate supply of consumer goods. b. a reliance on production quotas. d. the introduction of a market economy.
Answers: 1
question
Business, 22.06.2019 20:10
The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51
Answers: 2
You know the right answer?
Sandy has a choice between purchasing $5 comma 000 in Treasury bonds paying 4.0% interest or purchas...
Questions
question
Physics, 04.03.2022 09:40
question
Mathematics, 04.03.2022 09:40
question
Physics, 04.03.2022 09:40
question
Mathematics, 04.03.2022 09:50
question
Geography, 04.03.2022 09:50
question
Mathematics, 04.03.2022 09:50