### Advantages and disadvantages of subordinated debt

In what sense is subordinated debt advantageous to senior debtholders, and in what sense is it disadvantageous to them?

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In what sense is subordinated debt advantageous to senior debtholders, and in what sense is it disadvantageous to them?

What trait is commonly found in debt contracts? 1-seniority 2-covenants 3-callability 4-all of the above

1) Assume investors expect a 2.0 percent real rate of return over the next year. If the inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one-year U.S. Treasury security? 2) A thirty-year U.S. Treasury bond has a 4.0 percent interest rate. In contrast, a ten-year Treasury bond has an in

Describe the factors that have influenced your interest in studying business.

Research and identify the current levels of the real and nominal GDP, the unemployment rate, the inflation rate and the key interest rate. Relate these variables to the current state of the economy. What is the forecast for these variables for the next 1-2 years? Choose a company that you are familiar with or that you work for a

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Create a presentation (9-12 slides) for the Board which examines the current state of the U.S. economy. Focus on four key economic metrics: Gross Domestic Product (GDP), unemployment, inflation, and interest rates. In addition, discuss the state of the economy and political landscape for the largest economies in each of the thre

See the attached file. 1.(Weighted average cost of capital) The Target capital structure for QM Industries is 37% common Equity for the firm is 17.6%, the cost of preferred stock is 10.8%, the before-tax cost of debt is 7.2%, and the firm's tax rate is 35%, what is QM's weighted average cost of capital? QM's WACC is _____% (

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Debt is the term associated with money you owe another party. What is the difference between an expense and a debt? (Give several examples)

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Computatrix, a computer retailer, sells a new computer to Davina on credit. Davina buys the computer for her personal, home use. Computatrix attaches a security interest on the computer but does not file. Shortly thereafter, Davina sells the computer to Boulder for $2,000. Boulder buys the computer for his own personal, househol

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Generating a letter of interest for sorority can be essential for many college bound students. In this response, please review some essential questions that one must ask before they start to write their letter.

Please see the attachment for the problems. Problem 1 a) Compute the future value of $1000 at 10% compounded annually for 6 years. b) Compute the present value of $1000 due in 4 years at 15%, compounded semiannually. Problem 2 a) Compute the future value of a 9%, 5-year ordinary annuity that pays $600 each year. b) Ass

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Presented are two independent situation. 1. On Jan 1,2012 Drake Company issued 300,000 of 9% 10-year bonds at par. Interest is payable quarterly on Apr1,Jul 1,Oct 1, and Jan1. 2. On Jun 1,2012 Vince Company issued 200,000 of 12% 10-year bonds dated Jan 1 at par.plus accured interest. Interest is payable semiannually on July

1. Discuss the Yield Curve and its usefulness in predicting recessions. Did the Yield Curve from 2004 through 2007 predict the Great Recession of 2008-2010? Based on the current Yield Curve, detail your prediction for the U.S. economy for the next two years. 2. Discuss ways in which an investor can take advantage of a flat o

A. Nintendo Corporation issued $ 10 million of 3.375 % coupon bonds 10 years ago with a 30 year maturity. Each bond has a par value of $ 1,000, and they are callable at 104 % of par value. Flotation costs were 0.5 %, and the bonds were initially sold at par. However the interest rate is currently 6.175% for 20 year bonds, and NC

If a certain city had six tax-supported bond issues and three special assessment bond issues outstanding, it would be preferable to operating nine separate debt service funds or, at a minimum, one debt service fund for tax supported bonds and one for special assessment bonds?" Do you agree? Explain.

Saturn issues 6.5%, five-years bonds dated January 1, 2011, with a $500,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $510,666. The annual market rate is 6% on the issue date. (Effective interest amortizatoin of bond premium computing bond price) 1. Compute the total bond inter

Calculate the after-tax cost of debt for the Wallace Clinic, a for-profit healthcare provider, assuming that the coupon rate set on its debt is 11 percent and its tax rate is either: a. 0 percent b. 20 percent c. 40 percent

Assume Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. a. Suppose that two years after the bonds were issued, the required interest rate fell to 7 percent. What would be the bond's value? b. Suppose that two years after the bo

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On January 1, 2013, King Corporation acquired for $750,000 of 10% bonds, paying $705,186. The bonds mature January 1, 2024; interest is payable each July 1 and January 1. The discount of $44,814 provides an effective yield of 11%. King Corporation uses the effective-interest method and plans to hold these bonds to maturity. On J

Compare the overviews from the following two articles to analyse whether inflation or deflation is more likely in the next two years. 1. Krugman, P. (May 3, 2009) Falling Wage Syndrome. New York Times. Retrieved May, 2009 from: http://www.nytimes.com/2009/05/04/opinion/04krugman.html?_r=1 2. Meltzer, A.. (May 3, 2009) Inf

Your firm has debt worth 200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost equity of 12%. What is the value of the firm according to MM with corporate taxes? A) $475,875 B) $528,750 C) $587,500 D) $646,250 E) $710,875