Use the data provided on Cadbury to answer the question below. The risk free rate is 4.25%. The expected return on the market portfolio is 9.75%. The corporate tax rate is 40%
The face value of Cadbury's outstanding bonds is 2.450 billion pounds sterling. The coupon rate on Cadbury's bonds is 4.5%. Assume that the bonds pay annual coupons. The yield to maturity on Cadbury's bonds is 4.5%. Cadbury's bonds mature in 7 years. Cadbury has 1.650 billion common shares outstanding. The market price of Cadbury's common shares as of Dec 31, 2008 is 6.25 pounds sterling. Cadbury's Beta is 0.8. What is the market value of Cadbury's bonds?
A) £0.13B
B) £1.65B
C) £1.80B
D) £2.45B
E) £2.49B
D
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Under the direct method, cash paid to suppliers can be computed as cost of goods sold for the period
a. minus a decrease in inventory and plus an increase in accounts payable. b. plus a decrease in inventory and minus an increase in accounts payable. c. minus an increase in inventory and plus an increase in accounts payable. d. plus an increase in inventory and minus an increase in accounts
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As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers.
Answer the following statement true (T) or false (F)