The outstanding debt of Berstin Corp. has five years to maturity, a current yield of 6%, and a price of $95. What is the pretax cost of debt if the tax rate is 30%
A) 4.2%
B) 4.8%
C) 6.9%
D) more information needed
Answer: C
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Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.
Answer the following statement true (T) or false (F)
In which of the following situations would you prefer to be making a loan?
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Credit cards with tiered interest rates charge cardholders who
A) carry large balances a lower rate. B) pay off their balance monthly a higher rate. C) make early payments a higher rate. D) carry large balances a higher rate.