Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: A corporation borrows 1 million dollars at ten percent annual rate of interest. The firm has 40 percent tax rate. The yearly, after tax cost of this debt is

[A] $100,000

[B] $166,667

[C] $40,000

[D] $60,000

problem2: The purpose of the stock split is to

[A] Reduce the price of the stock

[B] Reduce trading activity

[C] Issue additional shares

[D] Increase the dividend

problem3: The repurchase of stock _____________ the earnings per share and _______________ the market price of stock

[A] Increase, decrease

[B] Decrease, increase

[C] Increase, increase

[D] Decrease, decrease

problem 4: The cost of each type of capital depends on the

[A] Business risk of the firm

[B] Financial risk of the firm

[C] risk-free cost of that type of funds.

[D] all of the above

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916803

Have any Question? 


Related Questions in Basic Finance

What is the difference between debenture bonds subordinated

What is the difference between debenture bonds, subordinated debenture bonds, and bonds backed by specific collateral? What are zerocoupon bonds?

David abbot is interested in purchasing a bond issued by

David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information: Par Value- $1,000 Cost- $910 Coupon interest rate- 7.5% Years to maturity: 10 Corporate tax rate- 35% a. The befor ...

Suppose you borrow 300000 at 7 for 30 years with 0 points

Suppose you borrow $300,000 at 7% for 30 years with 0 points. Suppose also that the mortgage note includes a prepayment penalty of 1% of the mortgage balance if the mortgage is prepaid within 10 years. What is the effect ...

Problems-1 cummingsnbsp has eat depreciation expense

PROBLEMS- 1. Cummings  has EAT, depreciation expense, capital expenses, debt and debt principal payments of $9m, $2.8m, $1.3m,  $40m and $1.5m respectively. Between the first and the second years, it has current assets o ...

Yield curve what factors influence the shape of the yield

Yield Curve : What factors influence the shape of the yield curve? Describe how financial market participants use the yield curve.

What were the principal conclusions of the business

What were the principal conclusions of the Business Roundtable CICE Study of the U.S. construction industry?

Finance discussion questioneactivity-bulluse the internet

Finance Discussion Question eActivity- • Use the Internet to research the economic activity of Brazil and Switzerland. Be prepared to discuss. • From the e-Activity, determine key reasons why a multinational corporation ...

What will be the worth of a bond with a par value of 1000

What will be the worth of a bond with a par value of $1000 earning a coupon interest rate of 12% and paying interest semi-annually at the end of the fifth year if the cost of capital is 8%.

Discussion performance measurement managing finance-both

Discussion Performance Measurement Managing Finance- Both the Genesis Energy and Sensible Essentials teams believe that the client engagement was very successful. All the critical learning tools were fully explored. Howe ...

Explain the following statementeven though outright

Explain the following statement: Even though outright purchases account for less than 10 percent of Fed transactions, the Fed's portfolio of securities consists mainly of securities bought outright.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate