« previous next »

Author Question: Once the weighted average cost of capital (WACC) is determined, then all projects of average risk ... (Read 71 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?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

These species are all at risk of extinction. Species with “slow” life-h These species are all at risk of extinction. Species with “slow” life-h
Killer Whale - Size comparison to an average human. Killer Whale - Size comparison to an average human.
Algorithm for assessing a patient at risk for suicide. Algorithm for assessing a patient at risk for suicide.
The lifetime risk for schizophrenia varies with the degree of relationship to an affected individual The lifetime risk for schizophrenia varies with the degree of relationship to an affected individual
Genes and Risk Factors for Alzheimer Disease Genes and Risk Factors for Alzheimer Disease
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Hormonal feedback loop components & Glucagon (glycogenolysis and gluconeogenesis)

For a complete list of videos, visit our video library