Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

total common share capital - 45000000 dividend rate - 10% total cost of issue -980000 call price @ 103 a)at what interest rate is refinancing

total common share capital - 45000000

dividend rate - 10%

total cost of issue -980000

call price @ 103

a)at what interest rate is refinancing justified?

b) if interest rate falls to 8%, how many years will it take for interest savings to exceed to cost of financing ??

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance

Authors: Harvey S Rosen

7th Edition

0072876484, 978-0072876482

More Books

Students also viewed these Finance questions

Question

★★★★★

Finch Corp. Sells portable air filtration system by mean of the internet and direct mail orders. Most of the components are purchased from foreign suppliers at a cost of $1,600. Finch supplies the...

Answered: 1 week ago

Question

★★★★★

Using information you've learned from class and from the pricing module, calculate an appropriate selling price for each of the items listed below. Filet Mignon - $25 food cost Garlic infused mashed...

Answered: 1 week ago

Question

★★★★★

In Example 6.3, we obtained the distribution function of Y = aX + b, when the distribution of X is known and a > 0. Obtain a similar result for the case when a Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

The following stockholders equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2014. Common Stock ($5 stated value) .............$2,000,000 Paid-in...

Answered: 1 week ago

Question

★★★★★

What is the impact of cyberbullying on mental health? a ) It improves mental health b ) It has no effect on mental health c ) It can lead to anxiety, depression, and low self - esteem d ) It makes...

Answered: 1 week ago

Question

★★★★★

Advertising (in thousands) Profit (in thousands) 5 150 7 200 9 250 11 325 13 400 15 450 17 500 19 525 1) Find a cubic model, , for the profit (in thousands), where is the advertising expenditure, in...

Answered: 1 week ago

Question

★★★★★

1.How do I identify my target market? 2.What are the key factors for a successful business plan? 3.How can I improve my companys cash flow? 4.What are the most effective ways to market a small...

Answered: 1 week ago

Question

★★★★★

1.What is the Renaissance, and why is it significant in art history? 2.How does Romanticism differ from Neoclassicism in art? 3.What is the significance of the Mona Lisa in art history? 4.How did the...

Answered: 1 week ago

Question

★★★★★

Question 1: What is cultural relativism, and how does it influence the study of cultures?

Answered: 1 week ago

Question

★★★★★

How does the concept of hegemony relate to culture?

Answered: 1 week ago

Question

★★★★★

a 3 phase induction motor is wound for poles and is supplied from 3 phase 50 Hz system .calculate 1. the synchronous speed,2.speed of the motor when slip is .04 and 3.the rotor frequency when the...

Answered: 1 week ago

Question

★★★★★

Describe why intercultural communication is a necessity

Answered: 1 week ago

Question

★★★★★

3.122 Robert Smith uses either regular plowing or minimal plowing to prepare the cornfields on his Minnesota farm. Regular plowing was used for 40% of the field acreage. Analysis after the crop was...

Answered: 1 week ago

Question

★★★★★

3.120 After meeting with the regional sales managers, Lauretta Anderson, president of Cowpie Computers, Inc., you find that she believes that the probability that sales will grow by 10% in the next...

Answered: 1 week ago

Previous Question Next Question