The Lakeland Company issues $518,000 of its 10%, 10-year bonds at 106 on March 31, 2017. The bond pays interest on March 31 and September 30. On September 30, 2017, how much cash did the company pay to the bondholders?

A) $2,590
B) $51,800
C) $25,900
D) $12,950


C .Interest Paid = $518,000 x 10% x 6/12 = $25,900

Business

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Business

Christopher, who is based in the U.S. has been offered a chance to work in Thailand. He finds that in this society people are expected to look after others in their family (or organization) and protect them when they are in trouble. This society tends to support ________.

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Business

The Cramden Bus Company is currently all equity financed, but it is considering a leveraged capital structure, the details of which are presented in the table under the column labeled 'Proposed'

Assume that the company generates perpetual annual EBIT. Assume that all cash flows occur at the end of the year and we are currently at the beginning of a year. Assume that taxes are zero. Assume that all of net income is paid out as a dividend. Assume that the debt is perpetual with annual coupons (and yield) of 4%. If Cramden recapitalizes, it will use the borrowed funds to repurchase (and cancel) shares. Determine both the value of the company and the value of the company's equity if it recapitalizes. Capital Structure Capital Structure Current Proposed EBIT $115,000 $115,000 Debt, D $0 $690,000 Cost of Debt, kd 4% Cost of Equity 5% A) Company value: $2,875,000; Equity value: $2,185,000 B) Company value: $2,875,000; Equity value: $2,875,000 C) Company value: $2,185,000; Equity value: $2,185,000 D) Company value: $2,300,000; Equity value: $1,610,000 E) Company value: $2,300,000; Equity value: $2,990,000

Business

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

Answer the following statement true (T) or false (F)

Business