Bacchus Enterprises has $112M in face value of debt being sold at 92.5% of face value, $247M of market value common stock with a beta of 1.48. The preferred stock is selling at $98 a share with 500,000 shares outstanding and a book value of $38.9M and a return of 12.4%. The debt has a coupon of 8% and will mature in 5 years. The market is returning 10% with a risk free rate of 3%. The company is sitting in the 21% tax bracket. What is the Cost of Debt

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

John has served as the chief operating officer (coo) for business graphics, inc., a publicly owned firm, the past 5 years. which of the following statements about john is correct? both john and the ceo of business graphics must certify to the sec that the firm's financial statements are accurate. as the coo, john will be ranked higher than the ceo but still below the cfo. in john's postition as the coo, it is highly unlikely that he would also be the chairperson of the board of directors. as the coo, john would typically be involved with accounting, finance, and asset purchase decisions.