A corporate bond has a face value of $1,000 and a coupon rate of 9%. The bond matures in 14 years
and has a current market price of $946. If the corporation sells more bonds, it will incur flotation
costs of $26 per bond.
If the corporate tax rate is 35%, what is the after-tax cost of debt capital?
A) 6.56% B) 5.57% C) 8.18% D) 7.31%
A
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Indicate whether the statement is true or false
Which of the following sections of a formal report contains detailed discussion that is always organized with headings?
A) Executive summary of the report B) Introduction to the report C) Body of the report D) Glossary of the report E) Bibliography of the report
Winning a sustainable competitive edge over competitors does not hinge on which of the following?
A. building competitively valuable expertise and capabilities not readily matched, and offering distinctive products B. having a distinctive competitive product offering C. building experience, know-how, and specialized capabilities that have been perfected over a long period of time D. building products and distributing them at low prices to a broad customer base irrespective of manufacturing cost E. having hard-to-beat capabilities and impressive product innovation
States do not have trademark statutes
Indicate whether the statement is true or false