1.A sole proprietor must meet state licensing criteria: a)whenever any type of new business is begun b)only when the business is one that the state regulates c)only when the business is one that the federal government regulates d)only when the business exceeds $1,000,000 in assets 2.If a sole proprietor dies leaving behind an insolvent business, the debts of the business: a)will be forgiven b)must be […]

Problem 9-2  After-Tax Cost of Debt LL Incorporated’s currently outstanding 7% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL’s after-tax cost of debt? Round your answer to two decimal places. Problem 9-4  Cost of Preferred Stock with […]

28.Which item is a key consideration regarding the role of a business banker in the customer-bank negotiation? Select one: a. a business banker must keep in mind the goals and needs of both the bank and the customer b. a business banker is responsible for negotiating terms that enhance the customer’s profitability c. a business banker should focus exclusively on what the bank wants in order to represent […]

Mae donated stock in Eagle Corporation (a publicly traded corporation) to her church. The stock was worth $60,000 and had been acquired as an investment three years ago at a cost of $50,000. Mae had AGI of $100,000 in the year she made the donation. Mae does not make a “reduced deduction election.” In completing her income tax return, how much of the charitable contribution […]

1​(Bond valuation) Calculate the value of a bond that matures in 19 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 11 percent and the​ market’s required yield to maturity on a​ comparable-risk bond is 9 percent. 2 Bond valuation) A bond that matures in 10 years has a ​$1 comma 000 par value. The annual coupon interest rate is 7 […]

What is the best approach to a good WBS plan? I’ve read some of it here: https://www.workamajig.com/blog/guide-to-work-breakdown-structures-wbs

Consider the simplest macro model with demand-determined output.       The equations are: C = 150 + 0.8Yd,                      Yd = Y-T, I = 400,                                    G = 700, T = .2Y, Consider the simplest macro model with demand-determined output.      The equations are: C = 150 + 0.8Yd,                      Yd = Y-T, I = 400,                                    G = 700, T = .2Y,                                    X = 130, and IM = 0.14Y. What is the […]

Hello Professionals, please help me with below questions. Two bonds A and B have the same credit rating, the same par value and the same coupon rate. Bond A has 30 years to maturity and bond B has 5 years to maturity. – Discuss which bond will trade at a higher price in the market  – Discuss what happens to the market price of each […]

Hello! Can you please help with the break even part? I was able to get all the answers except for that one. I was able to confirm my answers were correct. Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 180,000 shares of stock outstanding. Under Plan II, […]

My fiancé and I want to save for the down payment on the purchase of a new house in one year’s time. We have met with our bank, who have indicated they will lend us 97% of the purchase price of our new home, which means we require a 3 % down payment. To save for the down payment, we plan to invest $1500 in an investment account each month for one year (starting at […]