A firm issues $500 million in straight bonds at par and a coupon rate of 5%. The firm pays fees of 2% on the face value of the bonds. What is the net amount of funds that the debt issue will provide for the firm?
A) $466 million
B) $490 million
C) $539 million
D) $514.5 million
Answer: B
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Total contribution margin in dollars divided by pretax income is the:
A. Degree of operating leverage. B. Contribution margin ratio. C. Margin of safety. D. Break-even point in units. E. Sales mix.
Which of the following is true about the Triad?
A) Triad countries account for approximately one-third of world income and one-third of world population. B) Triad countries account for approximately 75% of world income as measured by GNP. C) Triad countries are those in which consumer products, industrial products, and the services sector each contribute one-third to GDP. D) Triad countries account for approximately 25% of world income as measured by GNP. E) Triad countries account for approximately 50% of world income as measured by the World Bank.
Which of the following is not one of the responses to risk presented in COSO ERM?
A. Reduce the risk. B. Delegate the risk. C. Accept the risk. D. Share the risk.
Rosie, a minor subject to her parents' care and control, signs a contract to rent a lake cabin from Sinclair for one year. Before the end of the term, Rosie moves out. Sinclair sues for the rent for the rest of the term. Rosie can? A)?avoid liability for the rent but not disaffirm the contract
B)?disaffirm the contract and avoid liability for the rent. C)?disaffirm the contract but not avoid liability for the rent. D)?neither disaffirm the contract nor avoid liability for the rent.