Tony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bonds will pay $45 interest every 6 months. Current market conditions are such that the bonds will be sold at net $937.79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor?
A. 11%
B. 10%
C. 9%
D. 8%
E. 7%
Answer: B
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Which of the following statements is CORRECT?
A. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers. Thus, cannibalization is dealt with by society through the antitrust laws. B. If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward. C. If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized. D. Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself. E. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors. Thus, cannibalization is dealt with by society through the antitrust laws.
Financial statements for Maraby Corporation appear below:Maraby CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets: Cash and marketable securities$220 $190 Accounts receivable, net 190 160 Inventory 140 150 Prepaid expenses 70 80 Total current assets 620 580 Noncurrent assets: Plant & equipment, net 1,180 1,150 Total assets$ 1,800 $ 1,730 Current liabilities: Accounts payable$100 $120 Accrued liabilities 100 70 Notes payable, short term 160 160 Total current liabilities 360 350 Noncurrent liabilities: Bonds payable 450 500 Total liabilities 810 850 Stockholders' equity:
Common stock, $5 par 160 160 Additional paid-in capital 200 200 Retained earnings 630 520 Total stockholders' equity 990 880 Total liabilities & stockholders' equity$ 1,800 $ 1,730 Maraby CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,960 Cost of goods sold 1,370 Gross margin 590 Selling and administrative expense 230 Net operating income 360 Interest expense 50 Net income before taxes 310 Income taxes (30%) 93 Net income$ 217 Maraby Corporation's inventory turnover for Year 2 was closest to: A. 9.4 B. 11.2 C. 13.5 D. 7.8
In which step of the sales process would the salesperson call to ensure customer satisfaction and repeat business?
A) approach B) presentation C) handle objections D) close the sale E) follow-up
To be considered as a team self-influence, rewards and sanctions must be administered by the:
a. individuals b. organization c. managers d. team