Nico Trading Corporation is considering issuing long-term debt. The debt would have a 30-year maturity and a 10 percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of 5 percent of face value
In addition, the firm would have to pay flotation costs of 5 percent of face value. The firm's tax rate is 35 percent. Given this information, the after-tax cost of debt for Nico Trading would be ________.
A) 7.26%
B) 11.17%
C) 10.00%
D) 9.00%
A
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If a consumer brings suit against the manufacturer, the retailer is relieved of its responsibility for the fitness and merchantability of the goods.
Answer the following statement true (T) or false (F)
Bond transaction details are spelled out in a/an:
a. debenture b. overture c. serial bond d. IOU e. indenture
Answer the following statements true (T) or false (F)
1. Corporate strategies to allow for greater employee voice in decision-making rarely work in unionized settings because of traditional job control unionism. 2. In the Electromation decision (1992) the NLRB ruled that the company's committees were considered legitimate labor organizations under the NLRA because they had unilateral control over wages, hours, and terms and conditions of employment. 3. The TEAM Act was introduced in Congress to explicitly outlaw labor-management committees that do not seek to negotiate collective bargaining agreements. 4. The TEAM Act is intended to make it easier for employers to design and implement employee involvement programs. 5. Under the NLRA, nonunion employee representation plans where there is give and take between management and workers are likely to be legal while those where management is clearly in control are likely to be considered illegal.
In a regression analysis of a first-order model involving 3 predictor variables and 25 observations, the following estimated regression equation was developed.
= 12 - 18x1 + 4x2 + 15x3
Also, the following standard errors and the sum of squares were obtained.
sb1 = 3sb2 = 6sb3 = 7SST = 4900SSE = 1296
If we are interested in testing for the significance of the relationship among the variables (i.e., significance of the model), the critical value of F at?= .05 is
A. 2.76. B. 4.87. C. 3.10. D. 3.07.