« previous next »

Author Question: Once the weighted average cost of capital (WACC) is determined, then all projects of average risk ... (Read 140 times)

james

  • Hero Member
  • *****
  • Posts: 573
on: Jul 10, 2018
Once the weighted average cost of capital (WACC) is determined, then all projects of average risk
  will be compared to the original WACC regardless of the size of the capital budget.
 
  Indicate whether the statement is true or false

Question 2

Graystone bonds have a maturity value of 1,000. The bonds carry a coupon rate of 12 percent. Interest is paid
  semiannually. The bonds will mature in nine years. If the current market price is 976.50,
 
  a. what is the yield to maturity on the bond?
  b. what is the current yield on the bond?


sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

a. Yield to maturity = 12.44
b. Current yield = 120/976.50 = 12.29


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Bronchoscopy. Figure illustrates physician using a bronchoscope to inspect the patient’s bronchial t Bronchoscopy. Figure illustrates physician using a bronchoscope to inspect the patient’s bronchial t
Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ
Average Normal Blood Pressure Readings Average Normal Blood Pressure Readings
Eco-Development Projects Eco-Development Projects
As a result of a hole in the graph, which of the following functions does not have an average ... As a result of a hole in the graph, which of the following functions does not have an average ...
Age is the leading risk factor for cancer Age is the leading risk factor for cancer
Video: Carbohydrate digestion - mouth and stomach & pancreas and small intestine

For a complete list of videos, visit our video library