« previous next »

Author Question: Once the weighted average cost of capital (WACC) is determined, then all projects of average risk ... (Read 129 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-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
Dual Systems Model of Risk-Taking Dual Systems Model of Risk-Taking
A Scatterplot of the Test Scores and Average Grades of 10 Students A Scatterplot of the Test Scores and Average Grades of 10 Students
Cost Accounting: A Managerial Emphasis 16th Edition Cost Accounting: A Managerial Emphasis 16th Edition
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ... In 2000, the average charge of tax preparation was 95 . Assuming a normal distribution and a ...
Video: Acid-base imbalances - compensation of metabolic acidosis and alkalosis

For a complete list of videos, visit our video library