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To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?
To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $1,075, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC calculation?
Describe one factor for each of the following and what the impact would be on bond prices and interest rates
1.Increase in supply for bonds
2.Increase in the demand for bonds
3.Decrease in the supply for bonds
4.Decrease in the demand for bonds
I was recently approached by a friend (who I consider highly competent) who is looking for financing to open up a franchise. Lets assume the opportunity generally makes sense. My question is: is there a model/literature/best practice for determining how ownership of the franchise should be determined between me (providing 90%+ of financing) and the operating partner (providing basically management and expertise). Thank you!
BMC is considering upgrading the sound systems in their theaters so that they can patrons can get the full experience from surround sound movies. They discovered that upgrade costs at loca±ons with 12 screens were $170,000 but were $110,000 at loca±ons with six screens. The Fxed costs of upgrading at a loca±on are
Explain the benefit principle for selecting a method of taxation. Is the benefit principle more likely to be followed if a tax structure is regressive, proportional, or progressive? Create an example of an actual tax to illustrate your answer.
Explain some of the implications in the investment banking and insurance businesses trends
Ways of promoting investment banking by the government
. Kazuma Matsumoto, a foreign exchange trader in Japan, has JPY 50,000,000 for short-term money market investment and wants to make profit based on the following rates. Explain specific steps that Kazuma must take to make a covered interest arbitrage. State your answer in JPY.


3-month Germany interest rate: 2.85% per annum

3-month Japan interest rate: 1.5% per annum

Spot rate: JPY 125.9100/EUR

3-month Forward Rate JPY 126.8500/EUR
How easing of monetary policy works through the exchange rate and what potential impact on the economy this would have
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