User Account

All Pages

Equivalent in terms of return

Assignment Help Operation Management
Reference no: EM131152338

What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.

Reference no: EM131152338

Questions Cloud

New issue of preferred stock : F Co. has a new issue of preferred stock that will pay $25 dividend per year, but the first dividend will not be paid until 15 years from today. If you require a return of 9% on this stock, how much should you pay today?
Shares of common stock outstanding : Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $85 million, a coupon r..
Explain what is meant by ethical behavior : Develop and propose a plan for improving the effectiveness of communication in your organization. Incorporate the elements needed to establish a clear purpose. Explain what is meant by ethical behavior, and why organizations should be concerned abo..
Calculate the appropriate selling : Calculate the appropriate selling price of a 30-year 5% annual coupon paid semiannually, $1,000 corporate bond that was purchased five years ago. Marketplace interest rates are averaging 8%.
Equivalent in terms of return : What is the interest rate needed on a $1,000 face value 5% coupon corporate bond in order to make it equivalent in terms of return to one whose interest rate is tax free? Assume the corporate tax rate is 30%.
Recent coupon payment occurred : The trade settled two days ago and the most recent coupon payment occurred 32 days ago. What was the invoice price that you were required to pay?
Find the expected return and variance : Find the expected return and variance of a two-asset portfolio, 65% bonds and 35% stocks. The expected return is 6% for bonds and 10% for stocks. The variances are 12% for bonds and 25% for stock. Assume that the correlation coefficient between bo..
How many coulombs of charge are deposited on the plane : A lightning bolt strikes an airplane with 30 kA for 2 ms. How many coulombs of charge are deposited on the Plane?
Determine the allowable rotation of the tabs : The twisting member has a diameter of 0.3 in. and the tabs are 1 in. away from each of the fixed ends. (Take G = 150 ksi.)

Reviews

Write a Review

Operation Management Questions & Answers

  How does the law regarding union recognition for public

How does the law regarding union recognition for public employees in thestate of Florida compare with the NLRA rules regarding union recognition for private-sector employees?

  What is the critical path for this network

What is the critical path for this network? Show the activity schedule for this project. The park commissioner would like to open the park to the public within six months from the time the work on the project is started.

  Affect your selection of data and measurement strategies

Activity Instruction Deming (1987) states that one of the seven deadly diseases is using only visible figures as an input to management. How do you think this concept could affect your selection of data and measurement strategies? When historical dat..

  Would there be differences in the decision making process

internally it may be necessary to communicate persuasively to a boss peer or subordinate. in a 250-300 word response

  Write an executive summary identifying appropriate design

Write an executive summary identifying appropriate design approaches for a selected product and service. Pick one service with which you are familiar. Complete three to five line items such as production line, self-service, or personal attention ..

  Determine two potential opportunities specific

Discuss a situation where you were influenced by an infomercial, attractive packaging, and a discount flyer to purchase a product, and explain why you think the promotional method made such an impact on you.

  Break-even point for sales of this product

Ohio Corporation sells its product for $16 per unit and incurs variable costs of $10 per unit and total fixed costs of $12,000. What is Ohio Corporation’s break-even point for sales of this product?

  Information transfer in hospitals-ambulatory care facilities

Discuss three ways in which a computer system could facilitate information transfer between hospitals and ambulatory care facilities, thus enhancing continuity of care for previously hospitalized patients who have been discharged and are now being fo..

  What is the average time spent by each order waiting

Is it worth reallocating resources so that large orders wait an average of 0.3 weeks while small orders wait an average of 0.7 weeks before being processed?

  What are the responsibilities of the board of directors

What are the responsibilities of the board of directors? Please provide an example of a board of directors that did not meet its responsibilities.

  Supply-demand and cost and inventory data

Josie Gall's firm has developed the following supply, demand, and cost and inventory data. Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a ..

  What are the potential negative consequences either way

You are a Contracting Officer for the Navy. You have released a solicitation through the Navy’s Seaport-e Multiple Award Contract for an IT contract with an estimated value of $150 million. Offerors are required to submit their proposals electronical..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd